Bond Funds Continue to Dominate in December

Bond funds saw inflows of $29 billion in December, according to Strategic Insight (SI), an Asset International company.

Though SI called the monthly intake moderate compared to prior months, it still contributed to the record inflows reported for bond funds for the year (see “Bond Funds See Record Inflows in 2009”).

In contrast, U.S. equity funds saw a net outflow of $300 million in December, while international equity funds took in $8 billion. Assets in money-market funds increased $5 billion during the month, and emerging market funds garnered a net inflow of about $3 billion.

According to SI’s Monthly Fund Industry Review, among smaller-size managers of long-term funds, those that led in total long-term fund flows in December were Van Eck, Manning & Napier, Rydex Investments, International Value Advisors, Sentinel Asset Management, Transamerica Asset Management, and RidgeWorth Capital.

Among the largest firms (firms with more than $20 billion in long-term fund assets under management), those garnering the most long-term fund flows were BlackRock ($8.5 billion; the firm’s acquisition of Barclays Global Investors completed at the beginning of the month, hence this number includes flows into both traditional funds and the iShares ETFs); PIMCO / Allianz Global ($8 billion); Vanguard ($7.6 billion); JPMorgan ($3 billion); SEI ($2.3 billion); State Street Global Advisors ($2.3 billion); Franklin Templeton ($2 billion); and T. Rowe Price ($1.5 billion).

SI said ETF/ETN flow volumes reached their highest levels since December 2008, totaling $30 billion, and were propelled by S&P 500 Index, US Dollar bullish, Large-Cap (Value and Growth), Small Blend, and Utilities funds.

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