The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Beantown No Longer King of the Fund Hill Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, April 26, 2004

Beantown No Longer King of the Fund Hill

by: Theresa Sim

Boston may still control 20 percent of all mutual fund assets, but other trends signal that the firms' hometown is collectively slipping from its top spot, reported Charles Stein of the Boston Globe on Sunday.

In 2003, Boston fund firms captured only 8 percent of new money, compared to 42 percent in 1994, according to the Financial Research Corp. Who's to blame? Stein cites troubles at Boston firms Putnam Investments and MFS Investment Management, and the tremendous success of firms like Vanguard Group, American Funds, PIMCO Funds and Dodge & Cox.

Putnam and MFS, both suffering outflows in 2002, took harder hits after the two were named in investigations, said Stein. In 2003, Putnam's net outflows were $28.8 billion and MFS had a net inflow of $1.6 billion. In the first two months of 2004, Putnam and MFS both experienced outflows.

Boston-based Fidelity, although it has lost ground to Vanguard and American Funds in recent years, has benefited from staying far away from the mutual fund scandals. Fidelity garnered $31 billion in 2003 and $11 billion in the first two months of 2004, Stein reported.

American Funds, PIMCO and Dodge & Cox all responded effectively to the market collapse by promoting a conservative image and stable investments.

American Funds' inflows were $4 billion in 2000, $23 billion in 2001, $38 billion in 2002 and a record $65 billion in 2003. Two of American's funds also surpassed industry vanguard Fidelity's Magellen as the largest funds.

Offsetting the decline is the inflow of funds managed by Boston subadvisors for firms like Vanguard, and the rise of smaller and mid sized fund firms, like Pioneer Investments, Eaton Vance and Grantham, Mayo, Van Otterloo. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use