The industry’s players continue to dominate the charts, with increasing assets and net flows both in 2006 and early 2007.
To stay on top, American Funds has rolled out nine target-date funds for those set to retire between 2010 and 2050.
American Funds’ Growth Fund of America has some $167 billion in assets, according to the Boston-based Financial Research Corporation, making it the biggest fund of 2006 in terms of assets. Last year, the fund attracted $19.2 billion in assets — up from the $18 billion that came in during 2005. Other popular American Funds products include the Capital Income Builder and EuroPac funds.
Vanguard is moving to expand its product line as well, with a focus on helping investors target international investments.
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“We have about $190 billion in mutual fund assets via financial advisors,” says Martha Papariello, head of the Vanguard Financial Advisor Services Group that includes about 70 individuals working with broker-dealers, RIAs, banks and other firms. “We continue to see great growth in fixed-income products, which are something Vanguard is traditionally known for, as well as in our index products. This is where we’ve seen especially fantastic growth.”
“It’s hard to beat us on expense ratio,” Papariello says.
“Based on our lengthy experience, we are always careful and targeted in what products we are coming out with,” she explains. “Still, we want to be proactive in the market.”