The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:2004's Asset Allocation Winners Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, February 09, 2005

2004's Asset Allocation Winners

Reported by Theresa Sim

According to one estimate, investors continued to choose asset allocation funds in 2004 -- pouring more than two-thirds of all net inflows into stock and bond funds to asset allocation funds.

Vanguard and Fidelity were first and second in bringing in asset allocation-driven money, followed by Pimco, T. Rowe Price, Franklin and Evergreen. Washington Mutual and Russell Investments rounded out the top eight, says Avi Nachmany, director of research at Strategic Insight.

What do these firms have in common? While some fund firms are undoubtedly benefiting from the "halo effect" and success in non-asset allocation areas, Nachmany attributes their success to product distinction. "Among the top ten, virtually each one has some kind of distinctive approach to doing this," says Nachmany.

For instance, Franklin gives investors the ability to buy their best funds in one transaction, while Washington Mutual's more traditional product is sold outside of the bank system, offers daily rebalancing and is also offered in wraps.

Additionally, the demand for this product is being fueled by a combination of factors. For one, investors are becoming less comfortable with risky investing -- in either a single stock or a single fund.

"I think it's also significantly driven by financial advisors and plan-administrators, in essence, those that function as fiduciaries in a world of greater regulatory awareness," says Nachmany. He continues: it's a "greater…persistence by fiduciaries to encourage investors to invest in that fashion…and lesser resistance by investors to act on that message."  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use