Investors did not lose their faith in mutual funds largely made up of mortgage securities from the Government National Mortgage Association, as the flow of cash into the funds rose in June.
According to the Investment Company Institute, Ginnie Mae mortgage funds gained a total of $660.9 million in net new sales for June, up from in $176.1 million in May and $129.2 million in June 1998.
Total assets for June were $59.8 billion, down from $61.3 billion in May but up from $57.6 billion a year earlier.
Other Ginnie Mae mutual fund data released for June included the following:
* Total sales, including reinvested dividends, were $1.71 billion, up from $1.23 billion in May and $1.16 billion in June 1998.
* Total sales, less reinvested dividends, were $1.5 billion, up from $1.03 billion in May and $989.2 million in June 1998.
* Redemptions were $1.052 billion, down from $1.054 billion in May and up from $1.03 billion a year earlier.
* Exchanges into the funds were $716.7 million, down from $879.4 million in May and up from $357.8 million in June 1998.
* Exchanges out of the funds were $879.5 million, down from $945.5 million in May and up from $395.3 million a year earlier.
* Liquid assets were minus-$4.92 billion, down from minus-$3.5 billion in May and minus-$1.75 billion in June 1998.
* Liquidity ratios were minus-8.2%, down from minus-5.7% in May and minus-3.0% a year earlier.