ETFs
American Funds continues slidePosted by RJ and Makay on Jan 23, 2012 |
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Mutual fund company American Funds had outflows of $82 billion in 2011, or 9% of total assets, according to Morningstar. Once a favorite of financial advisors, the fund group has had lagging performance for the past several years, and recent outflows represent an industry record, far more than the $28 billion of 2011 outflows at Fidelity investments. Industry stalwart Vanguard, meanwhile, had inflows of $44 billion in 2011.
Since the 2008 financial crisis, investors have remained cautious, though their risk tolerance has actually held steady, according to the Investment Company Institute’s (ICI) 2011 Annual Mutual Fund Shareholder Tracking Survey. In May 2008, 36% of fund-owning households said that they were wiling to take substantial or above-average risk. That level of risk tolerance has held at 29% for the three years since the crisis.
