After a recent surge in assets, American Funds, the mutual fund industry's persistent stalking horse, is on pace to overtake its two largest competitors: Fidelity Investments and Vanguard, Bloomberg reports.
Financial Research Corp. (FRC) reports that American Funds' assets ballooned to $543 billion from $393 billion, a 38% jump, during the past year. If American continues to grow at this pace, the company will soon overtake Vanguard, which sits atop $660 billion $30 billion more than Fidelity.
American Funds gathered $55.9 billion of new long-term assets during the first seven months of the year, matching the amount that flowed into Vanguard and Fidelity during the same period. Based on statistical projections, FRC expects American, which pulled in nearly half of the $12.2 billion soaked by the mutual fund industry in July, to sustain its momentum. Approximately seven of the nine best-selling mutual funds belong to American Funds, according to FRC.