Mutual fund business has gradually shifted its center cross-country from Boston to Los Angeles, according to one Bloomberg columnist.
The column elaborated on a story last week about American Funds, which is managed by Los Angeles-based Capital Group Cos, beating out Fidelity Investments of Boston and Vanguard Group of Pennsylvania, as the largest manager of stock and bond mutual funds.
The American Funds, according to the column, forfeited its 4-year reign as the best-selling US fund, according to the Boston consulting firm Financial Research Corp.
Chet Currier, the columnist for Bloomberg who wrote the piece, argued that Pimco, the Newport Beach firm not far from Los Angeles, has long been at top contender among mutual funds, posting $169.1 million at the end of 2005.
He also points to Franklin Resources Inc. of San Mateo, California, which is No. 4 at $275.8 billion, and Dodge & Cox of San Francisco, No. 11 at $98.8 billion. The number of top 12 managers in California is 12 and Massachusetts only accounts for two.