The rise in mid and long-term yields during May suggests that fund managers invested the inflow in shorter term maturities during May.
May was a great month for the U.S. mutual fund industry. According to just-released data from the Investment Company Institute (ICI), long-term funds – stock, bond and hybrid funds – experienced a net inflow of $52.8 billion in May. As today’s Hot Chart shows, that was the
largest monthly inflow on record. At this juncture, it is worth noting that even if investors’ interest for equities is coming back, the bulk of
the new inflows are still directed towards bond funds: a two-month cumulative inflow of $60.2 billion vs. $30.2 billion for stocks funds.(…)As shown, the scope for a potential redeployment of funds remains significant with 37.4% of total mutual fund assets still held in cash at the end of May.
