Investing December 17, 2012
U.S. Stock Fund Outflows May Surpass Record
December 17, 2012 (PLANSPONSOR.com) – Outflows from U.S. stock funds may surpass 2008’s record of $96.7 billion, according to Morningstar Inc.
Reported by PLANSPONSOR staff
Morningstar’s estimated U.S. mutual fund asset flows through November 2012 show U.S. stock funds shed another $14.1 billion in November, with particularly strong outflows from growth-oriented offerings. Active equity funds with lower expenses experienced slower outflows than higher-fee funds. Within the U.S. stock broad asset class, funds rated Gold, Silver or Bronze by Morningstar exhibited slower rates of decline than neutral- or negative-rated funds.
Investors continued to shift assets to fixed income funds, as open-end taxable-bond funds and municipal-bond funds collected $17.9 billion and $5.2 billion, respectively.
Additional highlights of the report include:
- Intermediate-term bond funds led all categories in terms of inflows for the sixth month in a row, garnering $8.3 billion in new assets;
- Investors redeemed $3.6 billion from high-yield bond funds in November, a category that has seen inflows of $24.4 billion so far this year, while continuing to add to bank-loan funds. These offerings took in new assets of $1.8 billion in November to bring the year-to-date total to $9.2 billion; and
- Inflows to emerging-markets bond funds slowed to $882 million in November. However, the category—which began the year with assets of just $46.3 billion—has taken in $20.0 billion year-to-date. Diversified emerging-markets were the lone bright spot within the international-stock asset class, collecting inflows of more than $1.1 billion in November.
The complete report is available here.
Sara Kelly
You Might Also Like:
Amended Lawsuit Targets Hess Corp.
The amended complaint against the Hess Corp. alleges Hess plan fiduciaries provided target-date mutual funds instead of collective investment trusts...
Mutual Funds See First Net Inflows in More Than 2 Years
Despite net inflows to mutual funds in February, reversing the long-term trend of outflows is unlikely, according to analysts.
Products |
Product and Service Launches
TIAA Distributes Annuity to Empower DC plans; HSA Bank launches emergency savings accounts; Navia partnership launches custom 401(k) plans; and...