State Street Global Advisors
has dropped off FRC
's list of the best selling fund groups after two months in the top two. SSgA reported outflows of $3.29 billion for the month of October after taking in $6.75 billion in inflows for September.
SSgA has recently found itself the target of law suits over losses incurred by its bond funds in retirement plans. The complaints allege that SSgA breached its fiduciary duty by investing in high-risk and highly leveraged financial instruments tied to, among other things, mortgage backed securities in its conservative bond funds.
Another possible explanation for the drop in SSgA's sales is more mundane. Institutions trade quickly in and out of ETFs and index funds like SSgA's, which could drastically effect the inflows and outflows at a given point in time.
As for how the other fund companies fared in October: BGI
retained the top spot taking in $14.39 billion; Vanguard
came in at number two with $6.60 billion in inflows; American
took the number three spot with $5.42 billion in inflows; Fidelity
maintained top five status from last month, taking in $1.81 billion for the number 4 spot; and rounding out the top five was T. Rowe
with $1.57 billion in inflows.
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