Most-Researched Investments in Morningstar Platforms Show Institutional Investors Interested in U.S. Equities in 2012; Individuals and Advisors Focused on Income, Risk Mitigation

CHICAGO, Feb. 28, 2013 /PRNewswire/ -- Are institutional investors signaling a return to equities? According to a list of the most-researched investments in Morningstar's platforms in 2012, about half of the most-researched mutual funds, exchange-traded funds (ETFs), and separate accounts by institutional investors were domestic and international equities.  In January 2013, equity mutual funds saw inflows of $15.5 billion, the largest monthly intake to equity funds since 2004 and the first month of inflows to stock funds in nearly two years, according to Morningstar's U.S. mutual fund asset flows report. While institutional investors demonstrated interest in equity funds or strategies in 2012, advisors and individuals were focused on income and risk mitigation.

Highlights of the most-researched investments in Morningstar platforms in 2012:

  • Large-cap equity strategies led the list of most-researched separate accounts by institutional investors, including six of the top 10.
  • Despite the institutional focus on equities, PIMCO Total Return Fund found a spot on the most-researched investment lists for individual investors, advisors, and institutions alike.
  • The four most-viewed ETFs by individual investors, as well as six of the top 10, were from Vanguard, while iShares ETFs were researched most by advisors and institutional investors.
  • Dividend focused ETFs were the most viewed investments among individual investors, while advisors showed particular interest in inflation-hedging ETFs, such as SPDR Gold Shares (GLD) and iShares Barclays TIPS Bond (TIP), as well as emerging-markets ETFs.

"Individual investors and financial advisors have been focused on producing income and avoiding risk for the last four years. This is consistent across ETFs and open-end mutual funds based on our fund flows and investment search statistics," Paul Justice, director of fund research for Morningstar, said. "While their risk aversion is high, they seem to be making an exception for emerging market equities, which illustrates that whatever risk appetite remains is focused overseas."

"However, institutional investors are telling a different story," Justice added. "They seem to be demonstrating an affinity for domestic equities across the capitalization spectrum as well as international stocks. It's also interesting to note that institutional investors searching the separate account space focused almost exclusively on active strategies last year. Perhaps the lower negotiated prices of separate accounts for large managers indicate that investors still have an appetite for active management, but only at a competitive price."

Morningstar compiled the list by totaling the most-researched mutual funds, exchange-traded funds (ETFs), and separate accounts from Jan. 1, 2012 through Dec. 31, 2012 on Morningstar Direct, its global investment analysis platform for institutional investors.  Morningstar also assembled a list of the most-researched mutual funds and ETFs from Morningstar.com, the company's site for individual investors, and Morningstar Advisor Workstation, its investment planning and research platform for financial advisors, for the same time period.

Most Researched Investments 2012—Individual Investors (Morningstar.com):

Mutual Funds

Fund Name

Ticker Symbol

Vanguard Dividend Growth Inv

VDIGX

PIMCO Total Return Instl

PTTRX

Vanguard Wellesley Income Inv

VWINX

Fidelity New Markets Income

FNMIX

Vanguard Equity-Income Inv

VEIPX

Dodge & Cox Income

DODIX

Vanguard Wellington Inv

VWELX

Loomis Sayles Bond Retail

LSBRX

T. Rowe Price Capital Appreciation

PRWCX

T. Rowe Price Equity Income

PRFDX

ETFs

ETF Name

Ticker Symbol

Vanguard Dividend Appreciation ETF

VIG

Vanguard High Dividend Yield Index ETF

VYM

Vanguard REIT Index ETF

VNQ

Vanguard MSCI Emerging Markets ETF

VWO

SPDR S&P Dividend

SDY

SPDR Gold Shares

GLD

ALPS Alerian MLP ETF

AMLP

Vanguard Energy ETF

VDE

Vanguard Health Care ETF

VHT

WisdomTree Emerging Markets Equity Income ETF

DEM

Most Researched Investments 2012—Financial Advisors (Morningstar Advisor Workstation):

Mutual Funds

Fund Name

Ticker Symbol

Templeton Global Bond A

TPINX

PIMCO Total Return A

PTTAX

American Funds Growth Fund of America A

AGTHX

Franklin Income A

FKINX

Oppenheimer Developing Markets A

ODMAX

First Eagle Global A

SGENX

American Funds Capital World Growth & Income A

CWGIX

BlackRock Global Allocation Inv A

MDLOX

American Funds Capital Income Builder A

CAIBX

Permanent Portfolio

PRPFX

ETFs

ETF Name

Ticker Symbol

SPDR Gold Shares

GLD

iShares Barclays TIPS Bond

TIP

Vanguard Dividend Appreciation ETF

VIG

Vanguard MSCI Emerging Markets ETF

VWO

iShares S&P U.S Preferred Stock Index

PFF

iShares MSCI Emerging Markets Index

EEM

iShares MSCI EAFE Index

EFA

SPDR S&P 500

SPY

Vanguard REIT Index ETF

VNQ

iShares iBoxx $ Invest Grade Corporate Bond

LQD

Most Researched Investments 2012—Institutional Investors (Morningstar Direct):

Mutual Funds

Fund Name

Ticker Symbol

PIMCO Total Return Instl

PTTRX

Dodge & Cox International Stock

DODFX

Harbor International Instl

HAINX

Oppenheimer Developing Markets A

ODMAX

Dodge & Cox Stock

DODGX

Fidelity Contrafund

FCNTX

Templeton Global Bond A

TPINX

T. Rowe Price Growth Stock

PRGFX

Vanguard 500 Index Signal

VIFSX

T. Rowe Price Equity Income

PRFDX

ETFs

ETF Name

Ticker Symbol

SPDR S&P 500

SPY

Vanguard FTSE Emerging Markets ETF

VWO

iShares MSCI EAFE Index

EFA

iShares MSCI Emerging Markets Index

EEM

SPDR Gold Shares

GLD

iShares Barclays TIPS Bond

TIP

iShares Russell 2000 Index

IWM

iShares Barclays Core Total U.S Bond Market ETF

AGG

iShares iBoxx $ High Yield Corporate Bond

HYG

iShares Russell 1000 Growth Index

IWF

Separate Accounts

Strategy Name

Schafer Cullen High Dividend Value Equity

The London Co. Small Cap

Polen Large Cap Growth

Winslow Capital Management Large Cap Growth

Wedgewood Concentrated Large Cap Growth

CS McKee Value Equity

Nuveen Intermediate-Term Municipal

AIM Private International ADR Growth

Dana Large Cap Equity

WHV International Equity

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 products and services for individuals, financial advisors, and institutions. Morningstar provides data on approximately 416,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 9 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and has approximately $149 billion in assets under advisement and management as of Dec. 31, 2012. The company has operations in 27 countries.

The above is for information purposes only and should not be considered a solicitation to buy or sell any security or to participate in a managed separate account program noted.

©2013 Morningstar, Inc. All rights reserved.
MORN-P

Media Contact:

Shawn Malayter 312-696-6050, shawn.malayter@morningstar.com

 

SOURCE Morningstar, Inc.



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