After a weekend sweep of the New York Yankees, Boston may be atop the American Leagues Eastern Division. But, according to The Boston Globe, the citys 80-year position as the No. 1 hub for mutual funds in the nation might be faltering, not just because of the recent scandal.
A research firm has concluded that the percentage of money put into Boston fund firms plummeted from 42% of the total market in 1994 to 8% in 2003, thanks to the scandal and its effects on Putnam and MFS, but also the growth of huge fund firms elsewhere.
Growth of assets at fund complexes including Vanguard, based in Pennsylvania, and Los Angeles-housed American Funds have sped up. According to Fidelity Investor Editor James Lowell, "Boston may still be king of the hill, but other places have built their own hills."
The report, put out by Financial Research Corp., still shows Boston possessing more than 20% of overall mutual fund assets, thanks to the presence of Fidelity.