Investing July 1, 2003

FRC: May Saw $20.4 Billion in Fund Inflow

July 1, 2003 (PLANSPONSOR.com) - Stock and bond mutual funds continued to pick up assets in May, recording net inflows of $20.4 billion for the month.
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Domestic equities led the way by taking in $13.1 billion, while corporate bond funds enjoyed a $4.4 billion intake. Other inflows were also recorded in international global bond funds and government bond funds, amassing $410 million and $1.1 billion, respectively in May, according to a Financial Research Corporate (FRC) report.   FRC reported a $24.7 billion inflow in April (See FRC: Funds Net $24.7 Billion Net April Inflow ).  

Tax-free bonds funds recovered from April’s $437 million outflow with a $1.4 billion intake. Year-to-date, all categories have registered net inflows:  corporate bonds ($36.6 billion), government bonds ($14 billion), domestic equity ($22.3 billion), international/global bonds ($6 billion) and tax-free ($2.9 billion).

In terms of Morningstar fund categories, intermediate-term bond funds ruled the roost in May, accumulating $2.2 billion for the month. In terms of net flows, large value funds sprouted by $1.6 billion, followed by:

  • conservative allocation – $1.5 billion
  • moderate allocation – $1.4 billion
  • short-term bond – $1.3 billion

All in the Family

Falling into the same rank as the previous month, the Vanguard Group and Fidelity Investments were once again head of the class in terms of total assets, with $526 billion and $515 billion, respectively.  Behind the two sizeable fund families in the total asset race were:

  • American Funds – $372 billion
  • Franklin Distributors Inc – $161 billion
  • Putnam Investments – $137 billion.

May’s best-sellers list looked like that of the previous month.   American Funds held this month’s top stop, recording net flows of $5.1 billion, with the Vanguard Group, falling back to second with a gain of $3.7 billion.  Rounding out the top five in monthly net inflows were:

  • Fidelity Distributors  – $2.9 billion
  • PIMCO Funds – $2.2 billion
  • Dodge & Cox – $1.1 billion.

Year-to-date, the top five list showed American Funds on top with $19.1 billion in net flow was similarly rearranged. Vanguard assumed the number two spot with $14.4 billion, followed by PIMCO, obtaining $12.9 billion thus far in 2003.

Individual Performance

In the top spot in May’s net flows was American Funds Growth Fund, with $963 million.  American Funds also held the next two spots, with the Cap Inc Bldr fund recording $843 million and the Inc Fund posting $736 million.

Excluded from the report is all data from money market funds.

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