In the first eight months of the year, Fidelity experienced $3.3 billion in net flows to its long-term funds, while American Funds reaped $46 billion and Vanguard $23 billion, the San Francisco Chronicle reports, citing Financial Research Corp. data.
Analysts say there are combined factors hitting Fidelity, including lackluster performance of its high-profile funds, competition from money market and exchange-traded funds, the fact that a number of its funds are closed and its marketing emphasis shift from individuals to retirement plans.
But Vincent Loporchio, a Fidelity spokesman, said the FRC figures are skewed since they do not include the Fidelity Advisors funds sold through intermediaries or money market funds. Thus, revisiting the data, Fidelity took in $44.3 billion to its stock, bond and money market funds in the first eight months of the year.
Nonetheless, it cannot be argued that a number of Fidelity’s high-profile funds have been suffering outflows, most notably Magellan, which has fallen from $51.2 billion to $45 billion this year alone.