Fund Flows Keep Surging

By Gregg Greenberg
TheStreet.com Staff Reporter

Fund flows kept up their torrid pace in the final week of November, capping off a month that saw stock funds take in over $11.5 billion. Meanwhile, investors placing bets on the declining dollar caused the flow into international funds to double last year's haul, according to fund tracking agencies.

For the week ended Dec. 1, fund tracker TrimTabs says equity funds took in $935 million, down from $1.3 billion the prior week. Meanwhile, AMG reports stock funds took in $3.8 billion for the week, over three times last week's take of $1.2 billion.

TrimTabs says equity funds that invest primarily in U.S. stocks had inflows of $853 million, compared with inflows of $944 million the prior week. International equity funds had inflows of $82 million, down from last week's inflows of $386 million.

"We are calling November total equity inflows at $11.5 billion," says Carl Wittnebert, TrimTabs director of research. "But the story of the year is pure international funds, which should take in twice as much this year as in 2003, and even more than they got in 2000."

Real estate funds reported their eighth consecutive week of positive inflows at $276 million, says AMG. Utility funds took in $43 million, marking the ninth consecutive week of positive inflows.

Taxable bond funds reported net cash inflows totaling $134 million with inflows of $242 million into international and global debt funds being offset by outflows from balanced funds, $216 million, and high yield funds, $186 million, says AMG.

AMG says money market funds reported outflows of $4.3 billion, while municipal bond funds saw inflows of $13 million for the week. Municipal bond funds investing in high yield municipal obligations reported inflows, $107 million, for the 22nd consecutive positive week.