Many mutual fund companies are happy just to have survived a brutal bear market that has obliterated more than $1 trillion in industry assets. Some fund complexes, though, have managed not only to survive but to grow assets and capture new market share.
More than two dozen fund complexes have seen assets and market share rise from year-end 1999 through the end of 2002, a period that roughly coincides with the bear market, according to Financial Research Corp. The biggest winners were giants Vanguard Group and American Funds, which leveraged low costs and balanced investing philosophies into significant gains, and PIMCO Funds, which capitalized on its leadership position in bond funds. Vanguard's market share rose 2.4 percentage points to 13.05%. American Funds' market share rose 1.7 percentage points to 8.97%, and PIMCO's market share rose 1.7 percentage points to 3.09%.