The Markets June 24, 2009

May Fund Flows Follow April Trends

Stock and bond funds experienced net inflows of $55.5 billion in May, according to the Financial Research Corporation (FRC).
Reported by

The Corporate Bond objective led the net inflow category with $20.9 billion, followed by the Domestic Equity objective with $12.5 billion—the same two objectives that led in April (see “Investors Choose Corporate Bonds in April“). The International/Global Equity objective took in $10.9 billion; Tax-Free Bond posted net inflows of $7.9 billion; Government Bond saw a $2.2 billion net intake, and the International/Global Fixed Income objective took in $1 billion.

By Morningstar category, investors chose Intermediate-Term Bond funds, which received $10.7 billion, FRC data showed. Diversified Emerging Markets funds posted a $4.4 net inflow, while Short-Term Bond funds ($4.0 billion), High-Yield Bond funds ($3.8 billion), and Pacific/Asia ex-Japan Stock funds ($3.7 billion) rounded out the top five.

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The PIMCO Total Return fund was again the best-selling fund for the month with a net inflow of $3.2 billion. BGI’s iShares Brazil fund came in second with $1.6 billion of monthly net flows. Vanguard’s Short-Term Investment fund ($1.2 billion), Direxion’s Final Bear 3X ($1.1 billion), and BGI’s iShares MSCI Emerging Market ($1.1 billion) rounded out the top five.

More information is available at www.frcnet.com.

 

Deals & People June 24, 2009

CUNA Mutual Acquires CPI

The Madison, Wisconsin-based CUNA Mutual Group will acquire CPI Qualified Plan Consultants, Inc.
Reported by

According to a news release, the acquisition of CPI, a Great Bend, Kansas-based recordkeeper will mean CUNA Mutual will be servicing more than 7,500 retirement plans with assets under administration nearing $10 billion.

CPI is the largest U.S. employee-owned, third-party administrator in the U.S., according to the release. In addition to recordkeeping, it also provides payroll services, as well as 403(b) common remitter and compliance services.

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CPI was incorporated in 1972 and has more than 400 employees. It provides administrative services to more than 3,600 clients nationwide with plan assets under administration of approximately $5 billion.

CUNA Mutual’s Retirement Plan Services division specializes in providing fully bundled retirement plans to credit unions throughout the U.S. CUNA Mutual’s plan assets under administration total nearly $5 billion.

The majority of the business from both companies is in the micro- and small-plan market (up to $10 million in assets). No immediate changes are expected in either organization, the release said.

The sale is expected to close June 30. Terms of the transaction are not being disclosed.

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