Fund flows

Fund Flows

1. In municipal bonds, a statement indicating a list of priorities for which the municipality will use the funds raised by the bond. Generally speaking, the flow of funds priorities begin with maintenance of city functions, followed by operations, debt service, expansion of the city's facilities, and reserving cash prepay debt.

2. In mutual funds, the balance of money going into and coming out a mutual fund.

Fund flows.

Fund flows are the traffic of money into and out of mutual funds or between funds that invest in various sectors.

This flow of money is considered an indicator of the direction the markets are headed. For example, large inflows of money into mutual funds may be interpreted as a bullish indicator for the stock market or for a specific sector, while dramatic outflows may signify an impending downturn.

However, if investors chase past performance or follow the currently hot sectors in deciding where to invest, large inflows may in fact precede disappointing performance.

References in periodicals archive ?
In the news release, Investors Less Attracted to Mutual Funds Managed by People with Foreign-Sounding Names Says University of Miami Study, issued 27-Apr-2015 by University of Miami School of Business Administration over PR Newswire, we are advised by the organization that the first paragraph, second sentence, should read "The study, forthcoming in The Review of Financial Studies, found that annual fund flows were 10% lower for funds managed by someone with a foreign sounding name compared to funds managed by someone with a more familiar American name, an annual loss of approximately $133,000 per $195 million under management.
Strong fund flows into frontier markets have been a key driver of outperformance in 2013.
Bernanke eased concern a reduction is imminent in stimulus that has fueled fund flows to emerging markets.
To fund the high external deficit, India relies heavily on foreign fund flows, exposing it to the risk of capital flight.
The FTSE Group and Emerging Portfolio Funds Research (aka EPFR Global) have launched a new emerging market focused index - the FTSE EPFR EM Fund Flows Index.
Of the total fund flows that reached the country in 2008-09, direct investment contribu-ted $ 35.
The change in the direction of the international fund flows unfortunately coincided with the traditionally low activity summer months.
The firm, which operates under the 73-year-old Henderson Global Investors brand, said it expected fund flows would be impacted by the turbulence sparked off by the sub-prime mortgage default crisis in the US.
The firm, which operates under the 73-year-old Henderson Global Investors brand, said it "had to assume" fund flows would be impacted by the turbulence sparked off by a sub-prime mortgage default crisis in the US.
Frazzini and Lamont use mutual fund flows as a measure of individual investor sentiment for different stocks.
The outstanding balance of assets held by major international banks in Malaysia, the Philippines and Thailand surged $5,169 million in the October-December quarter last year from the previous quarter, underscoring the resumed fund flows to Southeast Asia, the Bank for International Settlements (BIS) said in a report released Sunday.

Full browser ?