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

Wells Fargo will ramp up spending to lure brokers

Wirehouse, after losing 400 brokers in first quarter, is bucking trend among rivals who have said they are going to cut back on spending big bucks recruiting veteran advisers

DOL fiduciary rule pushes indexed annuity carriers to develop new products

Insurers are introducing fixed-rate deferred annuities with income guarantees to circumvent BICE.

Trump is gutting rules that Corporate America hates

With executive orders, bureaucratic actions and unprecedented use of an obscure statute, the administration has killed or postponed dozens of regulations.

Wells Fargo Advisors restricting investments for retirement accounts

Mutual fund sales will be limited to T shares, while municipal bonds, preferred stock and international debt will be prohibited.

Investments that advisers should look at in an overheated market

Cash, alternatives, international all beckon, but all have pros and cons.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print