The Markets July 1, 2007

Money Markets Rule Investors’ Transactions in May

The combined assets of the nation's mutual funds increased by $329.1 billion, or 3%, to $11.396 trillion in May, according to the Investment Company Institute (ICI).
Reported by
Investors changed to a conservative course for the month, as money market funds had an inflow of $57.57 billion in May, compared with an outflow of $11.26 billion in April. Funds offered primarily to institutions had an inflow of $37.43 billion, while funds offered primarily to individuals had an inflow of $20.14 billion.
Also indicative of the switch in investor mindset, stock funds posted an inflow of $1.55 billion in May, compared with an inflow of $18.21 billion in April. Among stock funds, world equity funds (U.S. funds that invest primarily overseas) posted an inflow of $11.54 billion in May versus an inflow of $16.50 billion in April, while funds that invest primarily in the U.S. had an outflow of $9.99 billion, compared to an inflow of $1.71 billion in April.
Bond funds had an inflow of $21.28 billion in May, compared with an inflow of $13.52 billion in April, according to ICI data. Taxable bond funds had an inflow of $17.71 billion in May, and municipal bond funds had an inflow of $3.58 billion.
Hybrid funds posted an inflow of $2.02 billion in May, compared with an inflow of $2.55 billion in April.
The ICI data is here.
Deals & People July 1, 2007

Hemingway to Head Aon Retirement Practice

Aon Consulting has tapped Cecil Hemingway to head its retirement practice operations.
Reported by
According to Business Insurance, in the new role, Hemingway – who was previously a managing principal at Towers Perrin – will be responsible for strategy development and implementation of objectives, policies and plans in the retirement practice area.
Hemingway, who will be based in Aon’s Stamford, Connecticut office, has previously held positions at Towers Perrin as head of Towers Perrin’s New York Metro Region Practice and head of the East Region Retirement Practice.
Hemingway succeeds Chris Bone, who is retiring, according to the report.

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