Ginnie Mae Funds Decline In September


The overall flow of cash into mutual funds largely made up of mortgage securities from Ginnie Mae decreased in September 1999, the latest month available.

According to the Investment Company Institute, Ginnie Mae mortgage funds gained a total of $85.9 million in net new sales for September, compared with a much larger gain of $685.8 million in August and $382.7 million in September 1998.

However, total assets for September were $61.1 billion, up slightly from $60.4 billion in August and $60.5 billion a year earlier.

Other Ginnie Mae mutual fund data released for September included the following:

* Total sales, including reinvested dividends, were $1.11 billion, down from $1.68 billion in August and $1.16 billion in September 1998.

* Total sales, less reinvested dividends, were $861.4 million, down from $1.47 billion in August and $987.3 million in September 1998.

* Redemptions were $1.028 billion, up from $999.5 million in August and $778.5 million a year earlier.

* Exchanges into the funds were $517.9 million, up from $469.1 million in August and down from $844.2 million in September 1998.

* Exchanges out of the funds were $479.7 million, down from $618.6 million in August and $581.7 million a year earlier.

* Liquid assets were minus-$5.55 billion, down from minus-$5.3 billion in August and minus-$3.42 billion in September 1998.

* Liquidity ratios were minus-9.1%, down from minus-8.8% in August and minus-5.6% a year earlier.