Moderate Allocation Funds Reign Supreme in April

May 25, 2005 (PLANSPONSOR.com) - Moderate allocation funds, along with intermediate-term bond funds and large-capitalization value offerings, were the top selling mutual fund categories in April, according to the latest Financial Research Corp (FRC) data.

According to an FRC news release, moderate allocation funds enjoyed a $4 billion inflow over the month, bringing their take to $19.7 billion year to date, compared with $24.4 billion in that category for all of 2004. Overall, investors added $8.1 billion to stock and bond mutual funds with intermediate bond funds adding $3.5 billion in April and large-cap value equity funds tacking on $2.5 billion.

Meanwhile, investors fled small-cap US stock funds, FRC said. International and global funds led inflows with $8 billion, followed by corporate bonds funds with $1 billion, according to the data.

American Funds continued to capture investors’ cash, FRC data showed. The firm’s Capital Income Builder Fund and Capital World Growth & Income Fund were April’s best sellers. Each raked in $1.4 billion in new money while American’s Growth Fund of America took in $1.3 billion. Through April, the funds added $32.4 billion, more than any other fund company and well ahead of The Vanguard Group’s second-place $20.6 billion.

PIMCO Funds was the next largest asset gainer at $1.6 billion, followed by Franklin Templeton and Dodge & Cox, both at $1.1 billion in new flows.

The largest outflow in April was State Street Global Advisors with a loss of $2.4 billion, followed by Janus Capital Group Inc. with $1.8 billion and Putnam Investments with $1.3 billion.

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