Investing September 25, 2003

FRC: Funds Take in $11.3 Billion in New Assets in August

September 25, 2003 (PLANSPONSOR.com) - Stock and bond mutual funds took in $11.3 billion in new assets in August.
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Once again, it was domestic equities that led net inflows among fund types, netting $18.1 billion, while corporate bond funds held onto a distant second place after taking in $4.4 billion.   Otherwise, all other fund categories – Government, Tax-Free, and Corporate – recorded net outflows for the month of $6.8 billion, $2.6 billion and $1.8 billion, respectively, according to a Financial Research Corporation (FRC) report.

Per Morningstar fund category, it was moderate allocation that took the top prize, accumulating $3.5 billion in the month.   This was followed by foreign stock, gaining $2.8 billion in terms of net flows.   The rest of the top five was composed of:

  • Large-Cap Value – $2.6 billion
  • Small-Cap Blend – $1.8 billion
  • Large-Cap Blend – $1.6 billion.

Fund Families

Fidelity Investments and Vanguard Group held the top fund group spots, with $547 billion and $546 billion, respectively.   Behind the two sizeable fund families in the total asset race were:

  • American Funds – $408 billion
  • Franklin Distributors Inc. – $168 billion
  • PIMCO Funds – $131 billion.

Among August’s best sellers was American Funds at the top, netting a $4.8 billion inflow.   This was followed up by Dodge & Cox’s $1 billion, Vanguard Group’s $756 million, T. Rowe Price Investment Services $668 million and Oakmark Funds $439 million.

Year-to-date, the top five list showed American Funds on top with $35.1 billion in net flow, followed by:

  • Vanguard – $19.7 billion
  • PIMCO – $15 billion
  • Fidelity – $13.1 billion
  • Dodge & Cox – $8 billion.

Top Sellers

American Funds dominated the top selling individual funds for the month.   Holding four out of the top five spots in August’s net flows were:

  • American Funds Growth Fund – $1.2 billion
  • American Funds Cap Inc Bldr – $781 million
  • American Funds Balanced Fund – $750 million
  • American Inc Fund – $722 million.

Only Dodge & Cox’s Stock Fund managed to break up the American block party, taking in $737 million and holding down fourth place on the list.

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