Three-quarters of the flows to mutual funds so far this year, or $113 billion, have been to international funds, Bloomberg reports.
Not only are mutual fund investors pouring money into international funds, but 72% of the money that pensions and endowments are investing, or $1.05 trillion, is also going to stocks overseas. This flood of investments is helping to push down the value of the U.S. dollar.
Stephen Jen, head of global currency research at
So far this year, the dollar has declined 7%; since 2003, it has dropped 21% in value.