Investors withdrew $5 billion from U.S. stock and bond long-term funds in September, Strategic Insight reports. This was a “significant improvement” from August, when open-end and closed-end mutual funds (excluding ETFs and VA sub-accounts) were hit with $33.6 billion in outflows following the downgrade of the U.S. debt rating.

For the third quarter, redemptions totaled $55 billion, essentially negating the $51 billion in inflows in the second quarter. The third quarter was the worst quarter for long-term funds since Q408, when outflows totaled $187 billion.

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