Investing May 28, 2003

ICI: ETFs Continue Asset Gain In April

May 28, 2003 (PLANSPONSOR.com) - Assets in exchange-traded funds (ETF) rose to $110.48 billion in April from $100.83 billion the previous month.
Reported by

ETFs saw total domestic equity index assets rise to $101.55 billion in April from $92.00 billion in March (See  ETFs Gain Assets in March ). Likewise, gains were seen in broad-based domestic ETFs, increasing to $88.49 billion from $80.28 billion, according to data supplied by the Investment Company Institute (ICI).

Rounding out the fund types with expansions in April were sector/industry domestic ETFs which increased their asset base to $13.06 billion, and global/international ETFs which expanded to $5.64 billion. Otherwise, the only category to see a decrease in total assets was bond ETFs, which slipped to $3.26 billion in April form $3.67 billion in March. 

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Additionally, the value of ETF shares issued in April exceeded that of shares redeemed by $1.80 billion and the total number of ETFs expanded to 118 from 114.   The expansion was due to three new broad-based and one new global/international addition.

Shares of exchange traded fund trade intraday on stock exchanges at market determined prices. Investors may buy or sell ETF shares through a broker just as they would the shares of any publicly traded company (see also  Exchange-Traded Funds ).

Investing May 27, 2003

FRC: Funds Net $24.7 Billion Net April Inflow

May 27, 2003 (PLANSPONSOR.com) - Mutual funds continued to pick up assets in April, recording net inflows of $24.7 billion for the month.
Reported by

Domestic equities led the way by taking in $12.2 billion, while corporate bond funds built on a strong March, taking in an additional $8.9 billion for the month, both totals significantly higher than the $2.1 billion and $7.8 billion, respectively, that flowed into the categories in March (See FRC: Funds Net $11.8 Billion March Inflow ).  Other inflows were also recorded in international global bond funds and government bond funds, amassing $3.5 billion and $582 million, respectively in April, according to a Financial Research Corporate (FRC) report.

Tax-free bonds funds could not hold on to the positive inflows recorded in March, suffering a net outflow of $437 million.  Year-to-date, all categories have registered net inflows:  corporate bonds ($32.2 billion), government bonds ($14.0 billion), domestic equity ($9.3 billion), international/global bonds ($5.6 billion) and tax-free ($1.6 billion).

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In terms of Morningstar fund categories, high yield bond funds still ruled the roost, accumulating $5.5 billionf for the month.  Still, bonds no longer dominatd the flow charts, according to FRC.  In terms of net flows, domestic hybrid funds grew by $3.0 billion, followed by:

  • Foreign stock – $2.5 billion
  • Large Growth – $2.0billion
  • Large Blend – $1.9 billion

Family Affair

Falling into the same rank as the previous month, the Vanguard Group and Fidelity Investments were once again head of the class in terms of total assets, with $499 billion and $488 billion, respectively.  Behind the two sizeable fund families in the total asset race were:

  • American Funds – $349 billion
  • Franklin Distributors Inc – $154 billion
  • Putnam Investments – $132 billion

However, the order got shuffled in April’s best-sellers list.   American Funds held this month’s top stop, recording net flows of $5.1 billion, with last month’s number one, Vanguard Group, falling back to second gaining $3.0 billion.  Rounding out the top five in monthly net inflows were:

  • PIMCO Funds – $2.6 billion
  • Fidelity Distributors  – $2.4 billion
  • T. Rowe Price Investment Services – $903 million

Year-to-date, the list top five list was similarly rearranged. Even though American Funds held on to the top after $14.0 billion in net flow, Vanguard assumed the number two spot with $10.8 billion, followed very closely behind by March’s number two PIMCO, obtaining $10.7 billion thus far in 2003.  Number four and five also switch places to finish out the top five as Fidelity Distributors and Dodge & Cox gained $4.8 billion and $3.4 billion in year-to-date net inflows, respectively.

Individual Performance

Dislodging the Vanguard Total Stock Index from the top spot in April’s net flows was American Funds Growth Fund, with $926 million.  American Funds also held the next two spots, with the Cap Inc Bldr fund recording $786 million and the Inc Fund posting $631 million. PIMCO’s High Yield and Total Return, collecting $619 million and $618 million, respectively, held the fourth and fifth spots.

Excluded from the report is all data from money market funds.

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