CHICAGO, Dec. 14, 2010 /PRNewswire/ -- Morningstar, Inc.
(Nasdaq: MORN), a leading provider of independent investment
research, today reported estimated U.S. mutual fund and
exchange-traded fund asset flows through November 2010. After contributing $26.8 billion to long-term mutual funds in
October, investors added just $2.7
billion in November. While the pattern of outflows for U.S.
stock funds continued, investors also lost enthusiasm for
fixed-income funds. Money market funds were the direct
beneficiaries with inflows of $24.7
billion, their best month since January 2009. U.S. ETFs saw inflows of
$10.3 billion in November, pushing
year-to-date inflows to $95.6 billion
and total industry assets to $951.5
billion.
Additional highlights from Morningstar's report on mutual
fund flows:
- Inflows for taxable-bond funds reached just $6.1 billion in November versus $21.0 billion in October, the smallest monthly
inflow for the asset class since May. After 22 consecutive months
of net inflows, municipal-bond funds saw net outflows of
$7.6 billion in November. This
reversal comes after investors added nearly $105.6 billion to the asset class from
January 2009 through October 2010 and marks the worst month for
municipal-bond funds in terms of net outflows except for the
$8.0 billion redeemed in October 2008 during the credit crisis.
- Rising rates and currency swings contributed to a tough month
for emerging-markets bond and world-bond funds, some of the more
aggressive areas of the bond market. Nevertheless, money continued
to flow to emerging-markets bond funds. These offerings have
collected more than $13.7 billion in
2010, and total assets have nearly doubled over the last 12 months
to $36.8 billion.
- Large-growth funds had the biggest outflows of any Morningstar
category this year, losing $43.5
billion.
- Investors pulled $1.0 billion
from Vanguard funds in November, the firm's first month of
long-term fund outflows since October
2008. Equity-oriented families including American,
Fidelity, and Columbia also continued to suffer outflows.
Despite redemptions of $1.9 billion
from PIMCO Total Return, the fund's first month of net outflows in
two years, PIMCO still took in $1.1
billion during November.
Additional highlights from Morningstar's report on ETF
flows:
- U.S. stock ETFs, with inflows of $7.9
billion, topped all ETF asset classes in November, followed
by international-stock ETFs with weaker, yet positive flows of
$2.3 billion as a result of renewed
sovereign credit fears in Europe
and a stronger U.S. dollar.
- Vanguard collected $6.3 billion
of the $10.3 billion assets added
industry-wide in November. The firm's ETF assets rose more than 62%
over the last 12 months, allowing it to capture nearly 15% of the
market share.
- After recording inflows during every month this year,
taxable-bond ETFs saw outflows of $660
million in November.
- Silver ETFs continued to see healthy inflows. Investors looking
to increase their commodities allocations may see silver, which has
seen price appreciation of 65% year to date, as a good alternative
to gold, which has gained 26% over the same period.
To view the complete report, please visit
http://www.global.morningstar.com/novflows10. For more information
about Morningstar Fund Flows, please visit
http://global.morningstar.com/fundflows.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent
investment research in North
America, Europe,
Australia, and Asia. The company offers an extensive line of
Internet, software, and print-based products and services for
individuals, financial advisors, and institutions. Morningstar
provides data on approximately 370,000 investment offerings,
including stocks, mutual funds, and similar vehicles, along with
real-time global market data on more than 4 million equities,
indexes, futures, options, commodities, and precious metals, in
addition to foreign exchange and Treasury markets. The company has
operations in 26 countries.
©2010 Morningstar, Inc. All rights reserved.
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Media Contact:
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Carling Spelhaug, 312-696-6150
or carling.spelhaug@morningstar.com
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SOURCE Morningstar, Inc.