American Funds back in the black, boosted by shift to equities

Firm enjoyed net inflows in January, first positive flow month since May '09

Feb 12, 2013 @ 2:53 pm

By Jason Kephart

equities, bonds, american funds
+ Zoom
(Bloomberg)

For the first time in almost four years, investors deposited more money into American Funds than they pulled out in a single month.

American Funds had net inflows of $964 million in January, the first month of net inflows since May 2009, according to Lipper Inc. Over that time, investors have pulled over $230 billion more out of the funds than they have put in.

American Funds benefited from investors' rushing back into equities to start the year. Stock funds overall gained $34 billion in new cash for the month, the most since January 1996, Lipper reported.

Three-quarters of American Funds' $987 billion of mutual fund assets are in its equity funds, so investor sentiment toward stocks has a big effect on the firm, said spokesman Chuck Freadhoff.

“It works both ways for us,” he said. “When people left equities for bonds, it hurt us. Now people are coming back into the market.”

Mr. Freadhoff is taking the reversal of fortune in stride.

“It's nice, but it's only one month,” he said. “We like to think long-term here.”

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Latest news & opinion

Retirement planning for women

Longer lifespans and lower savings require creative income strategies.

Sean Spicer resigns as press secretary after Anthony Scaramucci is appointed communications director

Scaramucci is known as an ardent foe of the DOL fiduciary rule, having said during the campaign that Trump would repeal it .

Redoing the math on a 4% retirement withdrawal rate

Given the current interest-rate environment and other factors, advisers disagree about whether the number is too conservative or not conservative enough.

House panel passes bill to replace DOL fiduciary rule with one requiring disclosure of conflicts

Measure likely to continue in partisan advance in House, but could stall in Senate.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print