Investors withdrew $10.7 billion from fund companies implicated in the scandal in the last four months of 2003, but rewarded competitors with clean records, Dow Jones Newswires reports.
Meanwhile, asset managers that kept their noses clean were rewarded by an influx of cash, according to the report, based on ICI data. The report also indicates that investors significantly picked up the pace of withdrawing money from investment managers plagued by scandals, which lost an average of only $1 billion during the first eight months of last year. Among fund providers that avoided the scandals, monthly inflows grew to $28.9 billion in the last four months of 2003 from $18.9 billion during the previous eight months, according to The ICI. Lower-cost stock funds charging annual fees of 1% or less attracted 64% of the new assets.