Wednesday, March 3, 2010

Mutual Fund Families and the Destruction of Wealth

Morningstar released a study of the extent to which mutual funds companies have created or destroyed their investors’ wealth over the past decade. The survey included the 50 largest mutual funds (measured by total net mutual fund assets).

TOP WEALTH CREATORS

FUND FIRM, WEALTH CREATED ($ MILLIONS)
American Funds, $190,953
Vanguard, $188,959
Fidelity, $153,082
Franklin Templeton, $78,442
PIMCO, $71,381

BIGGEST WEALTH DESTOYERS

FUND FIRM, WEALTH DESTROYED ($ MILLIONS)
Janus, -$58,397
Putnam, -$46,407
Alliance Bernstein, -$11,376
Invesco AIM, -$10,081
MFS, -$7,651

It is probably not fair to draw any profound conclusions from this study. However, those who follow the mutual fund industry will surely note that companies that destroyed the most wealth have not been considered strong stewards for their investors.

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