Skip to Content

Which Funds Are Gaining and Losing Favor in Six Charts

We look at the organic growth rate trends of funds and fund companies.

The massive size of the U.S. fund industry means that while asset flows measured in dollars tell much of the story, some of the nuances can get buried. That’s why organic growth rates - which measure net new flows against assets under management - can be another helpful lens for capturing investment trends.

That’s especially the case for spotting mid-sized and smaller fund companies, or individual funds, that are either gaining favor among investors or losing favor.

Organic growth rates also lay out starkly the significant headwinds being faced by fund companies whose focus is on actively-managed strategies.

The following chart looks at the organic growth rates among the top ten fund managers. Six of the nine families with active strategies are posting negative organic growth rates for the past twelve months, ranging from -0.3% for American Funds to -9.8% for Franklin Templeton. While the overall story isn’t new, the flow data shows the situation worsening for many companies from the twelve months ended May 2016.

Among the exceptions is Pimco, which has seen a marked change in fortunes as its actively-managed bond funds have seen investors return following the management upheaval that followed Bill Gross’ departure in September 2014. Pimco went from a -13.2% growth rate for the year ended May 2016 to 1.0% for the past year.

SPDR State Street Global Advisors stands out with some outsized percentage gains, but in a way, it’s not great news for the traditional active management industry. The firm’s growth rate of 47% for the last twelve months and 118% for the prior twelve months all comes from gains in Jeff Gundlach’s SPDR® DoubleLine Total Return Tactical ETF- an active ETF.

On the passive side, however, it’s pretty much good news across the board.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.