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Wednesday, December 01, 2010|
Surprise, American Funds Preps Funds That Might Sell
Surprise, surprise. Capital Group's American Funds [see profile] is launching a pair of bond funds and a balanced fund for mutual fund investors. The Los Angeles Times reports that its hometown mutual fund is not responding to the lack of demand for its U.S. equity funds. The timing, though, does make one wonder.
Since the 2008 financial crisis shifted mutual fund flows to bonds, American Funds has suffered withdrawals (though at 4 percent of AUM a small amount relative to its asset base), for the first time in this century.
Still, Paul Haaga, Capital's chairman, told the paper the new funds are an attempt to broaden its line-up and not a specific response to outflows from equity funds. The timing, he explained, is just a coincidence as the funds have been in development for years.
"We do it when we're ready to do it," he said.
The firm currently manages some $185 billion in fixed-income assets and $770 billion in its stock funds.
Printed from: MFWire.com/story.asp?s=35275
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