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Funds see huge outflows
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August 28, 1998: 1:36 p.m. ET
This could be the first time since 1990 that funds lose more cash than they get
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NEW YORK (CNNfn) - Investors pulled a net $3 billion out of stock mutual funds in the past week, according to Trim Tabs, a newsletter that tracks mutual fund capital flows.
If this pace continues, it could be the first net monthly outflow since September 1990, just before the Gulf War, said Trim Tabs research director Carl Wittnebert. As it is, August looks like the lightest month of stock-buying since 1991.
Wittnebert added that it appears few investors are actually selling their equity fund stakes, but rather putting their money into money market accounts until the stock market stabilizes.
Funds that invest primarily in U.S. stocks had outflows of $600 million in the week ended Wednesday, and international funds fared even worse, with investors pulling out a net $2.3 billion.
Bond funds, on the other hand, were more popular and took in a net $2 billion.
Santa Rosa, Calif.-based Trim Tabs bases its estimates on flows for the stock and bond funds it tracks. It runs the numbers from those funds through a computer model that translates them into estimates for the larger group of funds tracked by the Investment Co. Institute, a trade group.
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