Forty-two percent of the growth – or $242 billion – came from asset inflows, while the remaining 58% came from market appreciation, according to a press release from FRC. The total amount of assets in mutual funds now sits at nearly $5 trillion.
The FRC report also indicated which fund groups grew the fastest on the year, breaking funds down into categories of greater than $50 billion, between $10 billion and $50 billion, and less than $10 billion.
For the largest category, Barclays grew its mutual fund and exchange-traded fund (ETF) asset base by over 90% in 2004, more than tripling the next largest growth spurt seen in this category. State Street Global Advisors were second, far back at a still respectable 30.3% growth. American Funds was third with 30% growth.
For the $10 billion to $50 billion range, First Eagle Funds grew by 79.7%, making it the fastest in its category for the year. Following First Eagle was Calamos Asset Management (72.4%) and Grantham, Mayo, Van Otterloo (57%). Seven of these mid-tier firms saw asset growth of above 40%, compared to only one for the largest group.
For the smallest category, Hotchkis & Wiley Capital Management saw the largest mutual fund growth at a massive 271.1% in 2004. Also seeing over 100% growth was Julius Baer Securities (139.8%) and AssetMark Investment Services (106.1%). Forty firms saw asset growth of above 30% on the year, while 80% of all firms in this group saw positive growth in 2004.