Here’s one list that all fund firms wouldn’t mind being a part of.
Nine mutual fund providers can expect to see not only positive, but stronger-than-average investment momentum from investors in 2012, according to findings in the 2012 Investor Brandscape, an annual report released earlier this month by Cogent Research.
Topping the study’s list of the biggest gainers are Vanguard and T. Rowe Price; followed by Fidelity Advisor Funds, Fidelity Investments, American Funds, Wells Fargo Advantage Funds, Schwab/Laudus Funds, J.P. Morgan Funds, and ING Funds.
The study found that over the past year investors significantly reduced the average number of fund families with which they work from 1.9 to 1.56. Also, current investors are three times more likely to increase investments with current managers as they are to redeem investments - an indication of strengthened loyalty to their existing providers.
“A year ago, it was often the case that more clients were planning to give up on a manager than invest more money,” stated Cogent Research Principal John Meunier. “Today the opposite is true. Investors who stuck it out with their current managers are prepared to grow these relationships.”
Hung Tran writes for Money Management Executive.