After suffering $50 billion in 2010 outflows, one might conclude that asset bloat is less of a concern for American Funds today than it had been in the past. But it still remains an issue.
Even though American has experienced greater outflows (more than $80 billion through February) than any other family over the past two years, the firm's overall assets under management have recovered quite nicely, dwarfing what it has lost in redemptions. Total assets plummeted to $636 billion in February 2009 after peaking at $1.2 trillion in October 2007. Since then, total assets have recovered to $982 billion, a gain of nearly $350 billion.
Kevin McDevitt, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.