Fund Inflows Advanced in March at Slower Pace

April 27, 2005 ( - Stock and bond mutual funds enjoyed healthy inflows during March, but at a pace that continued to slow compared with previous months.

A Financial Research Corporation (FRC) report reported $28.4 billion in inflows in March, a more modest increase than the $33 billion inflow seen the month before (See FRC: February Fund Flow Loses Some Punch) and in January’s $46 billion advance.

Leading the way in March were International/Global funds, which enjoyed $17.5 billion in inflows, followed by $16.4 billion in inflows in Domestic Equity offerings, according to the FRC data. Corporate bond funds gave up $927 million in March, while government bond offerings pulled ahead over the month by $795 million.

Per Morningstar fund category, it was Moderate Allocation funds leading the way in March with a $5.5 billion inflow, followed by Foreign Large Blend that accumulated $3.9 billion in the month. This was followed by Intermediate Term Bond with a $3.5 billion gain, Large-Cap Blend with a $3.3 billion advance and Large-Cap Value with a $3 billion add on.

Fund Families

Vanguard Group and American Funds held the top fund group spots in terms of assets in March with $713 billion and $671 billion, respectively.  Behind the two sizeable fund families in the total asset race were:

  • Fidelity Investments – $667 billion
  • Franklin Templeton Investments   – $226 billion
  • PIMCO Funds – $169 billion.

Among March best sellers was American Funds at the top, netting a $7.2 billion inflow.  This was followed up by Vanguard’s $5.2 billion, Barclays Global Investors Funds at $4.8 billion, State Street Global Advisors at $4.1 billion and PIMCO’s $2 billion.

Top Sellers

In the top slots for March hot fund sellers were:

  • State Street Global Advisors SPDRs – $3.1 billion
  • Barclays Global Investors iShares Russell 2000 Index – $1.6 billion
  • American Funds Capital World Growth and Income – $1.58 billion
  • American Funds Capital Income Builder, $1.56 billion
  • American Funds Growth Fund – $1.3 billion