After a record-breaking first quarter in 2000, equity fund flows reversed direction in the first quarter of 2001, according to AMG Data Services of Arcata, Calif. Mutual fund investors reallocated investments from equity funds to bond and money market funds in the first quarter, according to the fund tracker.
Equity fund inflows fell 89 percent from the first quarter last year to the first quarter this year, dropping from $113.7 billion to $12.5 billion, according to AMG. For the same periods, taxable bond outflows of $30.7 billion reversed, attracting $22.8 billion in inflows. Money market fund inflows increased 159 percent, from 81.7 billion in the first quarter of 2000 to $200.1 billion in the first quarter of 2001, according to AMG.
March was especially rough on equity funds, which suffered approximately $9.7 billion in outflows, according to AMG. For the week ending April 4, $5.4 billion flowed out of equity funds, according to AMG. Half of that came from international and global funds and about a quarter came from large cap growth funds. For the same week, taxable bond funds experienced inflows of $1.2 billion, according to AMG.