Deutsche Bank Notes Healthy Inflows to Fund Companies (TROW, IVZ)

Deutsche Bank is out with a research report this morning, where it notes that mutual fund companies are continuing to see healthy inflows, with long-term flows steady in July. This was driven largely by stronger fixed income flows, which offset some equity outflows. Money armlet fund flows turned positive as well. The analysts noted that: 1. Total mutual fund flows in July were $30.7B (4% ann. org growth), driven by decent long-term inflows (stronger fixed income inflows offset modest equity outflows) and modest money market inflows 2. Equity flows turned negative with $6.1B of outflows (1% ann. org decay, despite strong equity markets), and were aided by ETF inflows (3% decay ex ETFs) 3. Fixed income inflows accelerated to $31.3B (15% ann. org growth); & 4) Money mkts posted modest inflows of $5.5B (2% ann. org growth). Deutsche Bank has Buy ratings on T. Rowe Price Group Inc. TROW and Invesco Ltd. IVZ; all other companies in DB’s coverage range have Hold ratings.