Morningstar Reports U.S. Mutual Fund and ETF Asset Flows Through November 2010

16 Dec, 2010, 20:30 ET from Morningstar, Inc.

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 $5.0 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 $7.4 billion in November, pushing year-to-date inflows to $93.8 billion and total industry assets to $951.4 billion.

Additional highlights from Morningstar’s report on mutual fund flows:

  • Inflows for taxable-bond funds reached just $6.0 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.
  • Equity-oriented families including American, Fidelity, and Columbia 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 $2.8 billion as a result of renewed sovereign credit fears in Europe and a stronger U.S. dollar.
  • Vanguard collected $3.3 billion of the $7.4 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.
  • 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.

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.

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Media Contact:

Carling Spelhaug, 312-696-6150 or carling.spelhaug@morningstar.com

SOURCE Morningstar, Inc.



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