Investors pulled money in November from investment companies facing the most serious charges in the mutual fund investigations, according to monthly data from Lipper Inc.
The six asset managers that suffered the most negative publicity last month and were hit by the most serious accusations - Alliance Capital, Bank of America, Janus, Pilgrim Baxter, Putnam, and Strong - had combined November outflows of an estimated $21.3 billion, Lipper reported. Its research indicated that other companies named in the scandals had small net inflows, on balance.
Don Cassidy, an analyst at Lipper, said investors who held "scandal-tainted" funds have reacted either by riding out the storm or moving to other companies rather than abandoning mutual funds altogether.
Equity funds had $22 billion of inflows during the month, down slightly from October. Bond funds had $2 billion of net redemptions, the smallest aggregate redemption number in five months.