Monthly Mutual Fund Report

Transcription

1 July, Monthly Mutual Fund Report Statistics for May-June Sales and Redemptions Total assets for all funds increased in May by $9. billion, or., to $.7 trillion. Money market funds had a net cash outflow of $7. billion compared to an outflow in April of $. billion. Other funds (equity, hybrid, and bond) had a net cash inflow of $. billion, compared to an inflow of $9. billion in April. New sales of nonmoney market funds, the purchase of new shares excluding reinvested dividends, were $. billion in May, up from $9. billion in April. The value of non-money market assets appreciated by $. billion in May, following an appreciation of $. billion in April. Total assets of equity funds increased by $. billion, or., to $.9 trillion. There was a $. billion net cash inflow to equity funds in May, compared with an inflow of $. billion in April. Yearto-date, equity funds have a $7. billion inflow, compared to an inflow of $7. billion in the first five months of. The market value of assets appreciated by $7.7 billion. Total assets for hybrid funds, which invest in a mix of stocks and bonds, increased., or $9. billion, to $. billion. In May, there was a $. billion net cash inflow for these funds. Thusfar in, hybrid funds have a $. billion inflow, while there was a $. billion inflow through this point in. Bond funds experienced a cash inflow of $9. billion, while their total assets increased by $. billion, to $. trillion. The market value of bond funds assets increased by $.7 billion, after adjusting for net sales and reinvested dividends. The assets of taxable bond funds increased by., while the assets of tax-exempt bond funds increased by.. The year-to-date inflow to bonds is $. billion; through May, the year-to-date inflow was $. billion. Assets of taxable and tax-exempt money market funds decreased $. billion, to $. trillion, a decrease of. for taxable money market funds and an increase of. for tax-exempt funds. Compared to a net cash outflow of $7. billion through May, money market funds had an outflow of $. billion in the first five months of.

2 Liquidity Ratio The liquidity ratio for bond and hybrid funds decreased from.7 to.7, while the ratio for equity funds decreased from. to. (figure ). Weekly Flows In June, there were outflows from equity funds of. of total assets, with returns of.7. Bond funds had inflows of. and returns of. for the month. Index funds had monthly inflows of. and returns of.. Aggressive growth funds had monthly inflows of. and returns of.9. Small-cap funds had an inflow of.9, and returns of.. There were outflows from international funds in June of.9 of assets and returns of.. Latin America funds had outflows of. and returns of.. Japan funds had inflows of. and returns of. of assets for the month of June. Pacific funds that do not invest in Japan had outflows of.7 and returns of. of assets. Capital Market Returns and Volatility The S&P ended June at 97., an increase of. from the beginning of the month. The -month loss was. at monthend. The annualized volatility for the daily return on the S&P was.. The -month average return on the Citigroup Bond Index was. for June. Volatility increased to. (figure ). Price-Earnings Ratio The macro projections for the growth of earnings of the Standard and Poor s index over the next two years have increased in the second quarter to., and still above the.7 historical average annual growth rate. The trailing price-operating earnings ratio decreased from. in the first quarter to 9.9 for the second quarter of, while the forward price-operating earnings ratio increased from. in the first quarter to 7.9 during the second quarter (figure 9). During the first quarter the price-earnings ratio for the Standard and Poor's Small-Cap Index fell to. from.. For more information please contact Matthew S. Rutledge (7) 97-9

3 Figure Sales of Mutual New Sales billions $ billions $ Redemptions Equity Bond & Hybrid Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Total Assets billions $ Equity Bond & Hybrid Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Net New Sales/Total Assets Equity - Bond & Hybrid - Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Source: Investment Company Institute

4 Figure Composition of Mutual ' Financial Assets ( of Total Financial Assets) 9 7 Corporate Stock Q 9Q Q 7Q Q Q 9Q Q 7 U.S. Government Securities and Corporate Bonds Q 9Q Q 7Q Q Q 9Q Q 7 Municipal Securities and Miscellaneous Assets Q 9Q Q 7Q Q Q 9Q Q Source: Flow of, Haver Analytics

5 Figure Net Portfolio Purchases ( of Total Assets) Net Common Stock Purchases Equity - - S&P (right scale) Bond & Hybrid - Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Net Purchases of Other Assets -Year Bond Rate (right scale) Bond & Hybrid Equity - Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Source: Investment Company Institute

6 Figure Liquidity Ratio* Equity Bond & Hybrid Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Equity Liquidity Ratio (Left Scale) Net New Sales / Total Assets (Right Scale) - - Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Bond & Hybrid Liquidity Ratio (Left Scale) - Net New Sales / Total Assets (Right Scale) - Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- - *The Liquidity Ratio is the Percent of Total Assets held in Cash and Short-Term Securities. Source: Investment Company Institute

7 Figure Industry Composition (Shaded Regions Indicate Periods of Rising Fed Rate) Money Market Other Equity World Equity Growth & Inc. Capital Apprec. Bond and Hybrid Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- World Equity. Dow Jones Global Stock Index/ Dow Jones Industrial Average (Right Scale). Total Assets World Equity / Total Assets Equity (Left Scale). Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Capital Appreciation Total Assets Capital Appreciation / Total Assets Equity (Left Scale) Russell Stock Index/ Dow Jones Industrial Average (Right Scale) 7 Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Source: Investment Company Institute

8 Figure a Weekly Flows into Mutual ( of Total Assets) Weekly Net Cash Flow Weekly Returns (right scale) - - 7// 9// // // // // Equity Bond - - 7// 9// // // // // - - Index - - 7// 9// // // // // Aggressive Growth // 9// // // // // // 9// // // // // Small Cap // 9// // // // // Source: Mutual Fund Trim Tabs Real Estate

9 Figure b Weekly Flows into Mutual ( of Total Assets) - - Weekly Net Cash Flow Weekly Returns (right scale) - - 7// 9// // // // // - International Technology - - 7// 9// // // // // (-.) - - 7// 9// // // // // Emerging Growth // 9// // // // // Latin American - - Japan - 7// 9// // // // // (.9) - - Pacific (ex. Japan) - - 7// 9// // // // // Source: Mutual Fund Trim Tabs

10 Figure 7 Net New Sales By Investment Objective (Shaded Regions Indicate Periods of Rising Fed Rate) Equity billions $ Total Equity Net New Sales (Right Scale) S&P Price Index (Left Scale) Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Bond & Hybrid billions $ -Year Bond Rate (Left Scale) Net New Sales (Right Scale) - - Jan- Jun- Nov- Apr-9 Sep-9 Feb-9 Jul-9 Dec- May- Source: Investment Company Institute

11 Figure Capital Market Returns and Volatility S&P Daily Returns and Volatility -year average Volatility (right scale) -year average Returns Citigroup Bond Index -month average Returns -month average Volatility (right scale) - Jan-9 Aug-9 Mar-9 Oct-9 May-9 Dec-9 Jul-9 Feb- Sep- Apr- Source: FAME Database, Citigroup

12 Figure 9 S&P Price-Earnings Ratios 7 S&P Smallcap S&P 99:Q 9:Q 97:Q 97:Q 9:Q 9:Q 99:Q 997:Q :Q S&P Price-Operating Earnings Ratio -qtr Trailing Earnings -qtr Forward Earnings 9:Q 97:Q 97:Q 97:Q 9:Q 9:Q 99:Q 99:Q 99:Q 999:Q :Q Price-Earnings Ratio S&P Price Earnings Ratio and the Growth of Earnings yr Growth of Earnings* (right scale) - 99:Q 9:Q 97:Q 97:Q 9:Q 9:Q 99:Q 997:Q :Q * Growth of earnings over subsequent quarters. Current observations use forecast of earnings from macro projections. source: Thomson Financial/First Call, Global Exchange (formerly DRI), Bloomberg

13 Figure Real Rate of Return on Nonfinancial Corporate Equity (from National Income and Flow of Accounts) Tobin's Q*.. 9:Q 9:Q 99:Q 977:Q 9:Q 99:Q :Q Profits of Nonfinancial Corporations ( of GDP) 9 Earnings Before Interest Payments 7 Profits 9:Q 9:Q 97:Q 9:Q 9:Q 99:Q :Q * Market Value of Equity plus Net Interest Bearing Debt/ Current value of Land, Inventories, Equipment, and Structures Source: Flow of, Haver Analytics