May was not a merry month for mutual fund net inflows, as it recorded the smallest gain in two years – $5.3 billion – down a whopping 83% from the $31.3 billion of new money in April, according to Financial Research. Hit hardest were U.S. stock funds which saw net outflows of $4.4 billion last month, after enjoying $7billion of net inflows in April. Foreign stocks did better, with $10.1 billion in May, but that figure pales compared with the $22.2 billion the month before. The top gainer last month was Los Angeles-based American Funds, with 4.93 billion, but that figure is 10% lower than a year ago. Financial Research also reported that Putnam Investments has experienced five years of mutual fund withdrawals, with a lost of $2.3 billion in May, bringing its total stock and bond fund assets to $94.5 billion at the end of May, down from $199.7 billion in June 2001.
