American Funds Tops Fidelity, Vanguard

Los Angeles-based American Funds finished 2005 as the nation’s largest manager of stock and bond mutual funds, topping rivals Fidelity Investments and Vanguard Group for the first time, new industry data show.

American Funds, part of the Capital Group Cos., had $847 billion in its stock and bond funds at year-end, said the Investment Company Institute, the industry’s trade group.

Vanguard was No. 2, with $795 billion, and Fidelity was third, with $794 billion.

A year earlier Fidelity ranked first with $730 billion, Vanguard was second with $708 billion and American Funds was third with $694 billion.

American Funds’ jump to the top had been expected because its stock and bond funds have been the industry’s bestsellers for the last four years.

Including money-market fund assets, however, Fidelity remained the largest fund company, with $1.01 trillion in assets.

Privately held Capital Group has shunned publicity about its operations. “Our goal has never been to be the largest fund family,” spokesman Chuck Freadhoff said. “Our goal is simply to provide superior long-term investment results to our clients.”

Tom Petruno