Dec. 24, 2003 — Overall mutual fund business remained healthy in November, but money flowed out of funds run by Janus Capital Group (JNS), Putnam Investments, and Alliance Cap Mgmt Holding L.P. (AC), which have been hurt by improper fund trading.
Stock funds and most bond funds took in money during the month, according to Financial Research Corp., which said stock and bond funds saw aggregate inflows of $16.9 billion.
Of that total, domestic stock funds netted $15.5 billion, and funds that invest in foreign stocks drew $3.6 billion. Corporate bond funds took in $1.6 billion, but municipal bond funds saw outflows of $1.4 billion, and assets in funds that invest in government bonds slid $2.4 billion.
Putnam’s assets dropped by $13 billion in November after declining by nearly $2.3 billion in October. The company last month agreed to settle charges with the Securities and Exchange Commission stemming from improper trading of its funds.
Assets at Janus fell by $2.5 billion in November after declining by about $2 billion a month earlier. The company said last week that it would refund $31.5 million to investors because of improper trading in its funds.