Investing December 1, 2004

Mutual Fund Inflows Down but Still Positive in October

December 1, 2004 (PLANSPONSOR.com) - October stock and bond mutual fund net inflows were down $7.6 billion when compared to the previous month, but the industry still saw a positive flow of money to the tune of $13.9 billion.
Reported by

According to the Financial Research Corporation (FRC), Domestic Equity funds led the way with net inflows of $8.1 billion. This was $3.3 billion less than in September , when Domestic Equity also led fund inflows. International/Global funds were second on the month, posting a $7.7 billion intake.

By Morningstar category, Moderate Allocation funds topped the October charts with an inflow of $3.9 billion, followed by Intermediate-Term Bond funds, which brought in $2.3 billion. Moderate Allocation led in September as well, posting returns of $4.1 billion on the month.

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

The largest fund group remains the Vanguard Group, but American Funds is growing faster than the current mutual fund king of kings. In October, American almost doubled its next-best competitor, pulling in $6.5 billion on the month. Vanguard was second, although the fund giant only saw intakes of $3.3 billion in October. This is the 19 th month in a row that American Funds has led the way with inflows.

Not surprising considering its overall net inflows, American Funds had the three top-selling funds in October, with its Growth Fund America pulling in $1.4 billion alone. On the year to date, American Funds has the five top-selling funds, with the Growth Fund America pulling in $16.8 billion since January.

Products November 30, 2004

Principal Launches Disability Insurance Program

November 30, 2004 (PLANSPONSOR.com) - The Principal Financial Group unveiled the Principal Disability Insurance (DI) Retirement Security program to help disabled people protect their retirement savings.
Reported by

Where traditional individual disability income insurance helps cover personal living expenses during a disability, the new Principal program provides an additional layer of protection, the company said in a news release. Upon disability, the program pays disability income benefits to an irrevocable trust, which in turn invests the funds as directed by the insured. At the end of the benefit period, trust assets can be distributed to the client, per the trust agreement, the company said.  

Principal said the new product could help keep people from being forced to raid their pensions to pay short-term bills.

Get more!  Sign up for PLANSPONSOR newsletters.

“Ailments that used to kill now disable. In the last twenty years, deaths due to cancer, heart attack and stroke have gone down significantly, but disabilities due to those same three are up dramatically,” Deana Strable, vice president of the Specialty Benefit Division of the Principal Financial Group, said in the news release. “Our most valuable asset is our income, including the income we depend on for our retirement years. The Principal DI Retirement Security program helps provide peace-of-mind that in the event a disability does occur, the financial security we’ve worked so hard to create is protected.”

Individuals interested in learning more about the Principal DI Retirement Security program should contact their local Principal Financial Group representative. Marketers interested in learning more should contact the company’s National Sales Desk at 800-654-4278, option 2, 2, 1.

«