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Money Management Executive

Bigger Fund Complexes Don’t Always Mean Better Returns

September 03, 2003, 1:00 a.m. EDT 1 Min Read

Fidelity. Vanguard. JPMorgan. The names of such leading financial companies evoke security and trust. But bigger financial firms don’t always mean better performance, Reuters reports, citing a study by T. Rowe Price.

The study looked at the collective performance of each fund complex’s offerings over one, three, five and 10 years ending March 31.

Seventy-nine percent of T. Rowe Price’s funds outperformed their peers over the past one and three years, 77% bested their peers over the past five years, and 74% over the past decade.

Vanguard also put in a strong showing, with 68% of this company’s funds outperforming their peers over the past year, 76% over the past three years, 79% over the past five years and 82% over the past 10 years.

However, Putnam Investments’ funds didn’t fare so well, with only 28% of them outperforming their peers over the past year. In the past decade, only 20% did better than their equals.

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Money Management Executive
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