Investing January 28, 2004

Funds Pull in $24.3B In December Asset Advance

January 28, 2004 (PLANSPONSOR.com) - Stock and bond mutual funds took in $24.3 billion in new assets in December.
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Once again, it was domestic equities that led net inflows among fund types, netting $16.8 billion in December following a $17.4 billion November inflow (See     Domestic Equities Still Leading in November Fund Flows ) , while International/Global came in a distant second place in December, taking in $9.44 billion (following $3.35 November inflow).  Otherwise, the only other positive inflow was noted in the $3.20 billion recorded among Corporate bonds while the other fund categories – Government and Tax-Free – recorded net outflows for the month of $3.38 billion and $1.71 billion, respectively, according to a Financial Research Corporation (FRC) report.

Per Morningstar fund category, it was moderate allocation that took the top prize, accumulating $4.61 billion in the month.  This was followed by Large-Cap Value, gaining $3.92.billion in terms of net flows.  The rest of the top five was composed of:

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  • International Bond – $2.57 billion
  • Small-Cap Blend – $2.43 billion
  • Foreign Large-Cap Value – $1.86 billion .

Fund Families

Fidelity Investments and Vanguard Group held the top fund group spots in December, with $615 billion and $612 billion, respectively.  Behind the two sizeable fund families in the total asset race were:

  • American Funds – $485 billion
  • Franklin Distributors Inc. – $188 billion
  • PIMCO Funds – $143 billion.

Among December best sellers was American Funds at the top, netting a $8.47 billion inflow.  This was followed up by Fidelity’s $4.12 billion, PIMCO Funds’ $3.64 billion, Vanguard’s $3.6 billion, and Dimensional Fund Advisors’ $2.87 billion.

Year-to-date, the top five list showed American Funds on top with $65 billion in net flow, followed by:

  • Fidelity – $26.7 billion
  • PIMCO – $23.4 billion
  • Vanguard – $35.8 billion
  • Dimensional Fund Advisors – $6.18 billion.

Top Sellers

In the top slots for December’s hot fund sellers were:

  • American Funds Growth Fund – $1.94 billion
  • Dodge & Cox’s Stock Fund – $1.68 billion
  • PIMCO Total Return – $1.37 billion
  • American Funds Balanced – $1.08 billion
  • Fidelity Low-Priced Stock Fund – $914 million.

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