Fidelity saw its biggest fund outflow ever in 2008 as investors pulled $36.9 billion from the Boston Behemoth's stock and bond funds (they added $87 billion to its money funds). As a whole, the fund industry saw $194 billion in net outflows. That is the headline factoid from Bloomberg's report on Morningstar's fund flow stats.

The news organization also highlighted bad news at Franklin Resources ($21.5 billion in outflows) and Legg Mason ($21 billion in outflows). The Legg Mason numbers include $8.6 billion in withdrawals from its brand funds, $8.3 billion from Western Asset Management and $4.9 billion from Legg Mason Partners while Royce & Associates saw inflows of $556 million.

Rounding out the list of firms with the most net redemptions were Capital Group's American Funds ($19.7 billion), Putnam Investments ($14.4 billion) and Dodge & Cox ($12.2 billion).

Firms with inflows included: Vanguard Group ($34.7 billion in money in) and Pimco ($20.7 billion of net inflows).

The redemptions and falling asset values pushed the total AUM in stock and bond funds to $5.13 trillion at the end of the year. That is a 35 percent decline from where they started the year.

The biggest outflow number was in U.S. and international stock funds for which Morningstar reported $189.2 billion in withdrawals. Balanced funds withdrawals totaled $29.7 billion.

Two asset classes saw net inflows; Fixed income funds inflows reached $20.7 billion and alternative funds gained $4.1 billion in AUM.

ETFs also gained AUM. Winners of the segments $157.9 billion in 2008 net sales were State Street Corp. ($56.7 billion), Barclays Global Investors ($45.1 billion) and Vanguard ($23.8 billion). 

Edited by: Sean Hanna, Editor in Chief


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