Hub's October fund flows highlight market turmoil - Boston Business Journal:

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Half of the area's eight larges money managers -- , , and -- saw net outflowsx totaling $5 billion in State Street's highly volatile exchange-tradee funds accounted for a majority, some $3.3 of those net withdrawals. Those net outflows came during a turbulenty stretch for the market asa whole, as credi t concerns and signs of a possible recession led to run-upe and then subsequent sell-offs of blue-chip stocks withinj the S&P 500 and Dow Jones Industrial Indeed, both indexes ended the month back where they Yet some of Boston's fund managers saw thei assets rise despite the market's troubles.
reported roughlhy $2 billion in net inflow for October, a lift that broughf the fund giant's total year-to-datew inflows to $6.1 billion. Two Fidelity fundx -- the $59 billion Fidelity Diversifier Income Fund andthe $7.6 billion Fidelity Total Bond Fund -- were largelu to credit for the company'sw October inflows, combining for more than $1.6 billion in new client moneu during the 31-day period. Managed by William Boweer sinceApril 2001, Diversified Income was up more than 17 percen t as of Nov. 30 and has averaged a near 23 percenft annual return for fiveyears running, according to data providecd by in Chicago.
The fund's holdingw are spread among tech firms, business services providers and manufacturers, with its largest stakes targetinvg foreign issuers such asthe U.K.'s Vodafone Group PLC and Germany'es Bayer. Meanwhile, Total Bond is co-managedc by Ford O'Neil and Matthew Cont and holds asmattering fixed-income offeringd that include mortgage securities (33 percenrt of the portfolio), U.S. government bonds (18 percent) and corporatw and municipal creditissuances (21 The fund was up 4 percenr as of Nov. 30 and has averaged a 5 percent annualp return for fiveyears running.
Fidelity ended October with $977 billion in its stock and bond third behind Capital Researchand Management'es American Funds ($1.2 trillion) and ($1.21 trillion). American Funds booked $5.4 billion in net inflowes in October while Vanguardcollected $2.2 Locally, Asset Management saw the second largest infloq in October, netting $1.5 billion in new clien t money. The Boston firm had bookedf $11.8 billion in year-to-date inflows as of Oct. 31, rankinb it ninth among all fundcompanies nationally. Natixix had $37 billion in retail assets at the closd ofthe month. As an fund companies reported a total net inflo wof $29.5 billion in October.
The fund numbers were compilee by in Boston and only represent retail investmengt dollars ineach company's stock and bond funds. Monet market accounts and funds that targeyt large institutional investors werenot included.