Investing May 30, 2006

FRC: April Asset Flows Pick Up

May 30, 2006 (PLANSPONSOR.com) - Stock and bond funds experienced net inflows of $31.5 billion in April, according to Financial Research Corporation (FRC) data.
Reported by

The April showing represented the first time this year with a month-over-month increase in asset inflows – up from March’s $28.3 billion showing in 2006 (See  Fund Flows Continue Weak Cycle in March ).

According to the FRC report of April’s data, International/Global funds led the way with net inflows of $22.5 billion, followed by Domestic Equity funds with a $6.9 billion net intake. Corporate bond funds were ahead by $3.18 billion while government bond funds gave back $955 million.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

Per Morningstar fund category, it was Foreign Large-Cap Blend leading the way with a $4.39 billion April gain, while Foreign Large Growth followed at $3.19 billion and World Stock at a $3.11 billion gain. Intermediate Term Bond was up $2.89 billion and   Target-Date 2015-2029 was up $1.87 billion.

Fund Families

American Funds topped all complexes with $6.7 billion of net inflows while Fidelity Investments was the closest challenger at $5.83 billion. Barclays Global Investors Fund was ahead by $2.95 billion and the Vanguard Group had a $2.80 billion inflow over the month.

In terms of total assets, American Funds and Vanguard Group held the top fund group spots in April, with $864 billion and $863 billion, respectively.  Behind the two sizeable fund families in the April total asset race were:

  • Fidelity Investments – $805 billion
  • Franklin Distributors Inc. – $269 billion
  • Barclays Global Investors Funds – $206 billion.
Compliance May 26, 2006

ND Rep. Urges Labor Secretary to Release PBGC Annual Report

May 26, 2006 (PLANSPONSOR.com) - A Democratic congressman asked Secretary of Labor Elaine Chao to release the annual report detailing the financial health of the Pension Benefit Guaranty Corporation (PBGC) - the nation's private sector pension insurer.
Reported by

The agency has absorbed the pension plans of, among others, ailing members of the airline, steel and auto industries (See Auto Pensions Next Big PBGC Bomb? ).

US Representative Earl Pomeroy, (D-North Dakota), in a letter, said the seven week delay in the PBGC’s annual report “is directly in contrast to the Secretary’s own promise of greater transparency and is leaving millions in the dark.”

Get more!  Sign up for PLANSPONSOR newsletters.

According to a news release from Pomeroy’s office, the PBGC ended its fiscal year on September 30, 2005, and hasyet to release its annual report.

“As Congress and the public consider major pension funding reform legislation that could create greater risks to the retirement security of millions of Americans, unprecedented delays in the publication of the 2005 Annual Report are both unacceptable and represent an egregious lapse,” wrote Pomeroy.

«