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Mutual fund assets shrink
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October 28, 1999: 2:42 p.m. ET
Volatile stock prices prompted investors to cash out in September
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NEW YORK (CNNfn) - Investors cashed out of mutual funds in September, leaving total mutual fund assets at $5.98 trillion, down from $6.03 trillion in August, according to new data released by the Investment Company Institute.
The ICI, a Washington trade group, said volatile stock prices were the main reason behind the outflow of cash from mutual funds. Stock fund assets dropped to $3.30 trillion in September from a revised $3.34 billion a month earlier. New cash flows for stock funds increased to $9.38 billion from $8.91 billion in August.
But other types of funds suffered as well. Assets of hybrid funds declined to $366.7 billion in September from $373.0 in the previous month. And tax-free money market funds saw their assets trimmed to $193.2 billion last month from a revised $197.3 billion in August.
Municipal bond funds assets edged down to $289.3 billion from a revised $291.8 billion in August.
Hardly any fund type saw an increase in assets in the last month of the third quarter, but taxable bond funds kept their asset level unchanged at $541.7 billion, compared with $541.4 billion in August. Taxable money market funds also saw very little outflow, their assets shrinking slightly to $1.284 trillion in September from $1.285 trillion in August.
The annualized rate of redemptions for stock funds rose slightly to 23.9 percent of average net assets in September from 23.7 percent in August. Including exchanges into other funds, the figure was nearly unchanged at 39.3 percent in September from 39.2 percent in August. 
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