MutualFundOutflowsSaysWhat?

December 18, 2008 7:05 pm

According to the fine folks over at Trim Tabs , All Equity Mutual Funds posted outflows approaching $6.0 Billion in the week ended Wednesday December 17th.

This is lockstep with our thesis that there is a sea-change in the money management industry that will eventually see a great deal of pain for mutual fund companies. (We have been short on and off BEN, TROW and LM for client accounts). Here is what they had to say…

Sausalito, CA – December 18, 2008– TrimTabs Investment Research estimates that all equity mutual funds posted an outflow of $6.0 billion in the week ended Wednesday, December 17, versus an outflow of $2.8 billion in the previous week.

Equity funds that invest primarily in U.S. stocks posted an outflow of $5.6 billion, versus an outflow of $1.7 billion in the previous week. Equity funds that invest primarily in non-U.S. stocks had an outflow of $389 million, versus an outflow of $1.1 billion in the previous week. In addition, bond funds had an outflow of $4.1 billion, versus an outflow of $10.6 billion in the previous week, and hybrid funds had an outflow of $1.3 billion, versus an outflow of $3.5 billion in the previous week.

(NOTE: Charles Biderman is my guest on an upcoming episode of The Disciplined Investor Podcast)

Separately, TrimTabs reports that exchange-traded funds (ETFs) that invest in U.S. stocks posted an inflow of $11.6 billion, versus an inflow of $8.4 billion in the previous week. ETFs that invest in non-U.S. stocks had an inflow of $3.8 billion, versus an inflow of $2.9 billion in the previous week.

About TrimTabs Investment Research: It is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity–including mutual fund flows and exchange-traded fund flows–as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided trading strategies to institutional investors since 1990.  For more information, please visit www.TrimTabs.com.

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