The flow of capital into real estate mutual funds increased for the fourth consecutive quarter in the third quarter of 2003. Fund flows in the third quarter were $1.39 billion, the highest quarterly total since second quarter 2002, according to Jonathan Litt, senior real estate analyst, managing director at Citigroup Smith Barney. Fund flows increased 27 percent quarter over quarter, and 48.6 percent from the third quarter of 2002. Litt notes that real estate sector funds have received $2.8 billion of inflows year-to-date, and the sector's total assets now stand at $23 billion.

"Going forward, we believe positive flows into real estate funds will continue because of their strong, stable dividend yield and the continued broadening of the investor base as more REITs are added to the S&P indices," Litt says.

Mutual Fund Flows ($ mil)
Period	Real Estate	Utilities	All Equity	Fixed Income
3Q03	$1,391	($243)	$57,225	($9,548)
2Q03	1,095	(13)	36,809	39,986
1Q03	310	(393)	(7,237)	46,939
4Q02	42	(373)	(9,563)	25,976
3Q02	936	(881)	(52,283)	54,378
2Q02	1,426	(885)	25,362	34,207
1Q02	1,024	(562)	43,200	35,865
4Q01	(351)	(699)	2,811	27,104
3Q01	120	(766)	(7,096)	33,660
2Q01	298	(137)	26,817	19,019
1Q01	(11)	(406)	8,301	23,170
4Q00	63	85	(23,158)	(6,782)
3Q00	371	316	37,850	(6,250)
2Q00	313	45	48,392	(19,900)
1Q00	(519)	(475)	107,782	(41,762)
4Q99	(526)	(632)	25,693	(23,489)
3Q99	(165)	(104)	26,993	(3,533)
2Q99	(28)	(442)	44,876	3,687
1Q99	(609)	29	17,843	16,220
4Q98	(598)	482	(2,679)	15,618
3Q98	(539)	(45)	9,933	15,810
2Q98	(332)	(458)	50,623	17,211
1Q98	433	(298)	42,352	26,979
Total	$8,727	($15,040)	$913,968	$365,269
YTD Total	$2,796	($649)	$86,797	$77,376
YTD Weekly Avg.	$74	($17)	$2,284	$2,036
Total Assets	$22,979	$11,429	$2,792,141	$1,428,438
Source: AMG Data Services, Citigroup Smith Barney.