NU Online News Service, March 26, 2003, 1:37 p.m. EST – U.S. bank and savings institution branches generated $2.3 billion in sales of long-term mutual funds in January, according to Kenneth Kehrer Associates, Princeton, N.J.
Sales were down 25% from January 2002, but they were up more than 20% from December 2002.
Lynn Niedermeier, president of Invest Financial Corp., Tampa, Fla., the company that sponsors the survey, prefers to focus on the improvement the bank branches have reported since late 2002.
“Bank mutual fund sales in January were the best since October,” Niedermeier says.
Kehrer sees another reason for optimism: bank mutual fund sales grew twice as fast between December 2002 and January as bank variable annuity sales, suggesting that consumers were willing to accept a little more market risk in January than they were willing to accept the previous month.