Investing August 26, 2003

FRC: Stock, Bond Funds Still "In the Money" in July

August 26, 2003 (PLANSPONSOR.com) - Stock and bond mutual fund managers continued to sing "We're in the Money" during July as they vacuumed up $12.9 billion in new assets - down from the $27.4 billion June inflow they enjoyed
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Once again it was domestic equities that lead net inflows among fund types, netting $19.4 billion, according to a Financial Research Corporate (FRC) report. FRC reported earlier that domestic equities that lead net inflows among fund types in June, netting $20.5 billion. (See   FRC: Funds Absorb $27 Billion in New Assets In June).

Fixed income funds took it on the chin again, however, according to the FRC data. Government bond funds led the way for those in the negative column with a $4.1-billion outflow, while corporate bond funds likewise gave up ground with a $2.54 billion outflow. Tax-free bonds gave up $1.9 billion. International/global bond funds were the only ones in the fixed income space with a cheery smile, bringing in $2.1 billion in new assets.

For the year, equity funds ruled the roost with a $63-billion inflow, while tax-free bond funds trailed the pack with a relatively modest $1.1 billion asset intake.

Per Morningstar fund category, it was large value topped the list, accumulating $2.6 billion in the month.  This was closely pursued by large growth ($2.2 billion), moderate asset allocation ($2.18 billion) and conservative asset allocation ($2.1 billion).

All in theFamily

In terms of the top fund groups, The Vanguard Group and Fidelity Investments led the way once again in terms of total assets, with $536 billion and $533 billion, respectively.  Behind the two sizeable fund families in the total asset race were:

  • American Funds – $393 billion
  • Franklin Distributors Inc – $164 billion
  • Putnam Investments – $137 billion.

On June’s best-sellers list American Funds once again held the month’s top spot, recording net flows of $5.6 billion, followed by Fidelity’s $1.33 billion, Dodge & Cox Funds’ $1.1 billion and Vanguard’s $844 million.

Year-to-date, the top five list showed American Funds on top with $30.3 billion in net flow, followed by:

  • Vanguard – $18.9 billion
  • Fidelity – $12 billion
  • Dodge & Cox – $6.9 billion

Individual Excellence

American Funds dominated the top selling individual funds for the month.  Holding spots one through four in June’s net flows were:

  • American Funds Growth Fund – $1.2 billion
  • American Funds Cap Inc Bldr – $990 million
  • American Inc Fund – $867 million
  • American Funds Balanced Fund – $720 million

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