Vanguard tops fund companies for '08 sales

The Vanguard Group Inc. led all mutual fund companies in sales last year, according to new data from Financial Research Corp. The Malvern, Pa.-based fund firm took in $34.15 billion in new cash last year. Although the total represented a 38% decline from its 2007 sales, the firm still finished at the top. Pacific Investment Management Co. LLC of Newport Beach, Calif., posted $23.02 billion in net inflows, more than tripling its $5.92 billion in net flows for 2007, according to Boston-based FRC. The fund company was second in overall sales. Ivy Funds, which are offered by Waddell & Reed Inc. of Overland Park, Kan., secured third place with $7.29 billion in net inflows last year, down 3% from its total in 2007. For top-selling funds, the Pimco Total Return Fund (PTTRX) topped the list with $17.9 billion in net inflows last year, up from $6.2 billion in 2007. Vanguard Total Stock Index fund (VTSMX) took in $17.22 billion, and Eaton Vance Large Cap Value (EHSTX), offered by Eaton Vance Corp. of Boston, had $7.14 billion in net inflows last year. Industrywide, sales were down $200.9 billion last year, compared with 2007, FRC said. FRC data does not include ETFs, fund of funds and money market funds. Faced with declining sales and shrinking assets, many firms have cut staff. But some asset management firms are still recruiting in the areas of distribution, risk management and global business development, FRC reported. Still, it is projected that the industry will cut 15% of its work force by midyear, compared with the comparable time period in 2008, FRC said.