Insight September 2006 Monthly Update

The September issue of Insight takes a closer look at new fund launch activity. Our analysis documents the number and the type of funds launched in the past several years, and monitors their sales results. Our research also sheds light on how the changing dynamics of the markets and investor preferences have prompted mutual fund companies to expand their shelves over time. Are companies just being reactive? All signs point to the fact that the idea of “being there before investors’ appetites change direction” has become more accepted over time. Companies realize that reacting generally means acting after investors redeem their funds to buy something else they have yet to offer. In a follow-up to our original research article published in the February 2005 issue of Insight, the September Trend Lines story updates and expands our measure of the premium interest savings account segment. In the past few years, this product line has enjoyed considerable success in gathering assets against the backdrop of rising interest rates: collectively, deposits in these accounts reached $69 billion at the end of June 2006.