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. This was the worst quarter for long-term funds since the last quarter of 2008, when outflows totaled $187 billion. For the first nine months of the year, long-term funds have experienced net inflows of $84 billion-with $37 billion being taken out of U.S. stock funds, international stock funds reaping $49 billion, and bond funds receiving $72 billion in assets.