Investors poured $96bn in new money into Vanguard funds in 2007, making it the biggest-selling fund company in the US and ending American Funds' six-year run at the top.

Vanguard's inflows took its assets under management to $1,300bn. It last held the lead in new business in 2001, ceding to American Funds from 2002. Final figures for 2007 have not yet been compiled, but American Funds - part of Capital Group - is believed to have brought in about $90bn, falling just short of Vanguard's tally.