Corporate bond funds took in $8.2 billion and an additional $6.1 billion intake was accumulated in government bond funds, both totals higher than the $6.8 billion and $4.7 billion, respectively, that flowed into the categories in January (See Assets Flow Into Funds at Start 2003). Other inflows were also recorded in international/global bonds funds and tax-free bond funds, amassing $1.1 billion and $1.8 billion, respectively in February,according to a Financial Research Corporate (FRC) report.
Conversely, domestic equity funds could not hold on to the positive inflows recorded in January, turning in a net outflow of $6.8 billion. Year-to-date, domestic equities are now in the red, with a net outflow of $5.4 billion. Comparatively, all other categories have started 2003 with inflows: corporate bonds ($15.0 billion), government bonds ($10.9), international/global bonds ($2.8) and tax-free bonds ($2.0).
Almost a mirror image of January’s figures, February was good to bond funds. In terms of net flows, all of the top five Morningstar fund categories belonged to bond funds. Intermediate-term bond funds again held the top stop, accumulating $3.2 billion for the month.
Playing second fiddle, were inflows seen in high yield bonds of $2.8 billion. Rounding out the top five February inflow categories were:
- Short-term bonds – $2.6 billion
- Intermediate-term bonds – $2.1 billion
- Ultra short bonds – $1.8 billion
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 $466 billion and $452 billion, respectively. Behind the two sizeable fund families in the total asset race were:
- American Funds – $319 billion
- Franklin Distributors Inc – $147 billion
- Putnam Investments – $126 billion
However, the order got shuffled in February’s best-sellers list, as number one and two dosey-doed. PIMCO Funds held this month’s top stop, recording net flows of $2.6 billion, with American Funds gaining $2.3 billion. Rounding out the top five in monthly net inflows were:
- Vanguard Group – $2.0 billion
- MFS Investment Management – $1.1 billion
- Goldman Sachs Asset Management – $981 million
Year-to-date, the top three held true to the month’s order, with American Funds on top after $6.1 billion in net flow. PIMCO followed closely behind obtaining $5.9 billion and the Vanguard Group tallied $4.7 billion thus far in 2003. Finishing out the top five list was Goldman Sachs and Evergreen Investments with $1.9 billion and 1.7 billion in year-to-date net inflows, respectively.
Holding true to the previous three months, PIMCO Total Return maintained the top stop, besting its peers among February’s net flows with $843 million. PIMCO was also represented in the second sport, with the firm’s Low Duration fund adding $798 million, followed by the Evergreen Adjustable Rate $673 million for the month. American’s Cap Inc Bldr, collecting $550 million and Vanguard’s GNMA fund, recording a net inflow for the month of $517 million, held the fourth and fifth spots.
Excluded from the report is all data from money market funds.