Study: DC Plans Still Generated $47B 2001 Fund Inflows

October 17, 2002 ( - Defined contribution retirement plans pumped an estimated $47 billion in net flows into mutual funds during 2001, a recent study found.

According to Strategic Insight’s latest DC fund survey, the DC-generated assets accounted for at least one-third of the fund industry’s 2001 total cumulative flows (excluding flows of institutional money market funds).

The Strategic Insight study also estimated that DC investments, new contributory IRAs, rollover IRAs, variable annuities, and other qualified net buying of equity funds during 2001 amounted to an estimated $80 billion.

Regarding equities, Strategic Insight said value funds in DC plans generated an estimated $10 billion in net 2001 flows, a pattern the research company said has continued into 2002. DC plan growth funds also turned in a strong 2001 performance, despite having spent much of 2000 with big losses, the company said.

Bond fund DC net flows in 2001 totaled $11 billion, Strategic Insight said.   Short/intermediate duration and high quality bond funds controlled much of these inflows, according to the research report.

According to Strategic Insight, the fund companies benefiting most from the DC plan inflows in 2001 were:

  • Fidelity Investments with an estimated $16 billion
  • American Funds with $8.5 billion
  • The Vanguard Group with $7 billion
  • PIMCO with $4 billion.