Mutual Fund Assets Surpass $10 Trillion for First Time

Mutual fund assets surpassed the $10 trillion mark for the first time, reaching $10.32 billion, Bloomberg reports, citing data from Bobroff Consulting and Lipper.

Fidelity Investments is, once again, the largest fund company in the nation, with $1.1 trillion of assets and a market share of 10.7%. Vanguard is next, with $1.03 trillion of assets and a market share of 10%. Third up is American Funds, with $1.01 trillion in assets and a 9.8% market share. Collectively, the three giants control 30.5% of the total assets in the industry, and the top 10 companies have a 47% market share.

“We’re seeing a far greater concentration,” commented Geoff Bobroff, president of Bobroff Consulting.

Market share then drops off considerably after that, with Franklin Resources coming in as the fourth largest fund company in the nation, controlling $314 billion in assets, for a market share of 3.1%.

The market share of the remaining six companies on the top 10 list ranges from 2.8% to 2.1%.

During the first eight months of 2006, mutual funds took in net flows of $262.8 billion, $168 billion of that going to equity and fixed income funds. The remaining $94.8 billion went to money market funds.

American Funds took in the greatest amount of flows to equity and fixed income funds, netting $46.1 billion or 27% of money invested in those funds. Vanguard reaped $23.9 billion in those categories and Fidelity, $3.3 billion.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.