Tags: goldman sachs | franklin templeton | fund flows | morningstar

FT: Goldman, Franklin Top Ranking of Worst-Selling Funds

FT: Goldman, Franklin Top Ranking of Worst-Selling Funds
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By    |   Monday, 08 January 2018 01:23 PM

Goldman Sachs and Franklin Templeton topped a list of the world’s worst-selling mutual fund managers as investors pulled money from the companies to put into passive funds, the Financial Times reported.

Investors took about $22.7 billion from Goldman’s fund arm in 2017, while Franklin Templeton suffered redemptions of $21.6 billion, according to data compiled by fund researcher Morningstar.

Vanguard and BlackRock, which are known for their passive index funds, ranked as the best-selling fund houses, pulling in $223 billion and $139 billion, respectively. The Morningstar figures include open-ended funds globally, including money market funds, from January until the end of November.

“The dominance of passive has continued unabated with eye-watering inflows from Vanguard and BlackRock,” Jonathan Miller, head of manager research for the UK at Morningstar, told the FT.

The passive fund industry has grown 4.5 times faster than the active industry, buoyed by rising stock markets. Investors sought lower fees among funds that track the performance of market benchmarks like the S&P 500 stock index.

More than 110 Goldman Sachs mutual funds had net outflows during the year. The largest redemptions were from its U.S. money market funds, and a small number of its fixed income products, Morningstar found.

Goldman said it disagreed with the inclusion in the analysis of money market funds, which are short-term investment vehicles that provide clients with a liquid alternative to cash.

“This analysis is flawed and the outcome is misleading for us and our peers. GSAM had inflows across all asset classes and regions in long-term fee based funds, building on strong performance and service for clients over recent years,” Goldman said said.

Pimco, which ranked among the worst-selling fund houses after the departure of renowned investor Bill Gross in 2014, staged a comeback. Investors put $92 billion into its mutual funds in the first 11 months of 2017.

“Pimco’s resurgence is impressive,” Miller said. “With the distraction of a leadership crisis and outflows behind it, the firm’s investment team has remained remarkably stable and well resourced.”

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Goldman Sachs and Franklin Templeton topped a list of the world's worst-selling mutual fund managers as investors pulled money from the companies to put into passive funds, the Financial Times reported.
goldman sachs, franklin templeton, fund flows, morningstar
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2018-23-08
Monday, 08 January 2018 01:23 PM
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