Investing November 26, 2003

Funds Draw $23 Billion in October Inflows

November 26, 2003 (PLANSPONSOR.com) - Stock and bond mutual funds took in $23.1 billion in new assets in October.
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Once again, it was domestic equities that led net inflows among fund types, netting $16 billion, while International/Global came in a distant second place, taking in $7.2 billion.  Otherwise, the only other positive inflow was noted in the $2.9 billion recorded among Corporate bonds while the other fund categories – Government and Tax-Free – recorded net outflows for the month of $2.2 billion and $702 million, respectively, according to a Financial Research Corporation (FRC) report. The October report followed similarly healthy inflows in September (See  FRC: $20.9 Billion Added to Funds in September ).

Per Morningstar fund category, it was moderate allocation that took the top prize, accumulating $3.6 billion in the month.  This was followed by Large-Cap Value, gaining $3.billion in terms of net flows.  The rest of the top five was composed of:

  • High-Yield Blend – $1.8 billion
  • Large-Cap Growth – $1.6 billion
  • Small-Cap Growth – $1.4 billion

Fund Families

Vanguard Group and Fidelity Investments held the top fund group spots, with $578 billion and $575 billion, respectively.  Behind the two sizeable fund families in the total asset race were:

  • American Funds – $439 billion
  • Franklin Distributors Inc. – $176 billion
  • Putnam Investments – $142 billion.

Among October best sellers was American Funds at the top, netting a $7 billion inflow.  This was followed up by Vanguard’s $3.7 billion, Fidelity’s $3.3 billion, and Franklin Distributors’ $1.7.billion.

Year-to-date, the top five list showed American Funds on top with $48 billion in net flow, followed by:

  • Vanguard – $26.7 billion
  • Fidelity – $19.2 billion
  • PIMCO – $17.3 billion
  • Dodge & Cox – $11.2 billion.

Top Sellers

American Funds dominated the top selling individual funds for the month.  In the top slots for October were:

  • American Funds Growth Fund – $1.6 billion
  • American Funds Balanced – $887 million
  • Vanguard Total Stock Index – $806 million.
  • American Inc Fund – $779 million

Only Dodge & Cox’s Stock Fund managed to break up the American block party, taking in $1 billion and holding down second place on the list.

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