Fidelity funds see monthly outflows

Fidelity Investments experienced outflows in its long-term mutual funds in October — the first time the fund behemoth has seen net outflows in months.
DEC 01, 2009
Fidelity Investments experienced outflows in its long-term mutual funds in October — the first time the fund behemoth has seen net outflows in months. Fidelity had $19 million in net outflows last month, according to data from Morningstar Inc. That's tiny compared with March, when the equity markets bottomed and the company had net outflows of $1.96 billion — but it ends a streak of six consecutive months of positive inflows. The hardest-hit funds for the month were Fidelity Magellan (-$380 million), Fidelity Equity Income (-$234 million) and Fidelity Spartan 500 Index (-$226 million). Despite the relatively bad month at Fidelity, however, estimated net flows were still a positive $17.1 billion year-to-date through Oct. 31. Among the largest five fund groups, American Funds, from Capital Research & Management Co., remains the only one to experience outflows year-to-date. In October, investors pulled $1.91 billion out of those funds, bringing the estimated outflows for 2009 to $21 billion. While at other large fund firms, flows to fixed-income funds have offset outflows in equity funds, American Funds' fixed-income funds have not had the same pull, according to Morningstar. Pacific Investment Management Co. LLC had the best October, ranking in $10.53 billion in net new cash, followed by The Vanguard Group Inc. ($7.37 billion), J.P. Morgan Funds, an affiliate of JPMorgan Chase & Co. ($3.73), and Franklin Templeton ($3.07 billion). One company that wasn't among the biggest gainers but still had a particularly noteworthy month was Dimensional Fund Advisors LP, which saw $646 million in inflows for October. Known for its passive investment strategies and the fact that its funds are sold exclusively through financial advisers, it has seen steady inflows this year, bringing in more than $5.8 billion through October, according to Morningstar. Total net assets at DFA have risen to $96 billion, making it the 12th-largest fund group by long-term fund assets. E-mail David Hoffman at [email protected].

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.