SECURITIES

Stock, Bond Fund Cash Flow Improves: Inflows into stock mutual funds increased only slightly in May, and the outflow from bond funds shrank, according to the Investment Company Institute, the funds’ trade group. The institute said net new cash flow into stock funds was $11.8 billion in May, compared to $11.3 billion in April and $9.2 billion in May, 1993. Net new cash flow into bond funds was a negative $2.2 billion in May, compared to a negative $4.8 billion in April and a positive $10.2 billion in May, 1993. Cash flow figures measure new money inflows after accounting for redemptions and exchanges among related funds. ICI data show the improvement in stock and bond numbers in May was mostly a result of a drop in redemptions, not a rise in new purchases. The newsletter Mutual Fund Trim Tabs estimates that in June, stock fund inflows have declined from May but that outflows from bond funds have eased further.