October 11, 2012
--- Investors
added $16.5 billion to long-term open-end funds in September, according to
Morningstar Inc. ---
Inflows of $29.9 billion into taxable-bond funds overcame
redemptions of $16.8 billion from U.S.-stock funds. September was the 17th
consecutive month of outflows for U.S.-stock funds and further evidence of
investors' preference for the perceived safety of fixed income over equities,
Morningstar said.
Following the Fed's announcement that it will keep
short-term rates near zero through mid-2015, investors revealed a willingness
to take on risk within fixed-income. Riskier categories such as
emerging-markets bond, high-yield bond and bank-loan each saw inflows of
approximately $2.0 billion during the month.
The largest fixed-income category, intermediate-term bond,
collected new assets of more than $13.2 billion, bolstered by inflows of $2.8
billion for PIMCO funds and more than $1.4 billion for
DoubleLine.
Within equities, nearly every category saw outflows, led by
large-growth with redemptions of $5 billion. While open-end equity mutual funds
lost assets of $16.8 billion, nearly an equal amount flowed into equity
exchange-traded funds.
Dividend-focused funds have attracted $17.3 billion in
assets this year, even as U.S.-stock funds lost $82.6 billion
overall.
To view the complete report, visit www.global.morningstar.com/septflows12.
Rebecca Moore