FMX | Connect – www.fmxconnect.com - (Reported 6/11/2010)
US Asset Managers May 2010 Flows Update
The increased market volatility (with the S&P500 down -8.2% for the month) drew investors out of equity funds and back into fixed income and money market funds. International (including European and emerging market funds) and small-cap funds were the hardest hit as investors exited the market or settled for the low yields of money market funds (with a $5 bn inflow over the past week).
Defined Benefit plans had a $48.4 bn outflow during 1Q10 according to the Fed. A House approved bill granting funding relief for sponsoring institutions to maintain deficits in their pension plans for longer periods, which will allow institutions to delay their re-entrance to the market to plug the $252 bn deficit.
By tracking returns and flows on each of the funds from each manager we estimate inflows and market returns on the companies’ AUMs before they are reported.
-TROW: we track 110 funds accounting for 98% of mutual fund assets. Other portfolios (40% of assets) mimic the returns of equity funds.
-BEN: we track 513 funds accounting for 73% of total AUM
-WDR: we track 68 funds accounting for 96% of mutual fund assets. Institutional accounts (11% of assets) mimic the returns of portfolios in advisor accounts.
-JNS: we track 125 funds accounting for 91% of mutual fund assets. Separate accounts (30% of assets) mimic returns of mutual fund portfolios.
US Equity funds saw a $31.5 bn net outflow during May while Fixed Income funds lost $14.6 bn in assets.
The increased uncertainty in equity markets slowed down the outflow in money market funds as investors await for increased stability in the markets to rebalance their portfolios
ETFs continue to attract institutional and retail assets
Source: ERDESK
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