US Mutual Fund Assets Near $10 Trillion

February 21, 2006 ( - Strong inflows and stock market appreciation so far in 2006 have caused the US mutual fund industry to inch close to the $10 trillion milestone for assets under management, according to Strategic Insight Mutual Fund Research and Consulting.

By January-end, total mutual fund industry assets (including open-end mutual funds, closed-end mutual funds, mutual funds underlying variable insurance products, and exchange-traded open-end mutual funds) were $9.9 trillion, Strategic Insight reported in a press release.  

In January 2006, i nflows to international equity funds jumped to an all-time high of near $30 billion, a monthly pace almost double the prior record, and the rebound in growth-style fund inflows, partly at the expense of value-style funds, continued.    “Accelerating diversification effort – from US centered equity funds to international funds; from value funds – which dominated choices over the past four years – towards growth funds; and increasing use of fund-of-funds, all reflect investors’ intensifying engagement in creating a more prudent asset allocation portfolio,” said Avi Nachmany, Strategic Insight’s Director of Research, in the release.

Strategic Insight Global research found that the growth is not just limited to US mutual funds.   Gains at US mutual funds have been outpaced by even faster expansion internationally. In 2005, mutual fund inflows internationally were nearly double US fund inflows, according to Strategic Insight Global.   Worldwide, net inflows to mutual funds neared $1 trillion in 2005, and mutual fund assets now exceed $20 trillion.

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