Investors Seek Higher-Risk Bond Funds

Investors added $27.7 billion to long-term open-end funds during October, according to Morningstar.

Taxable-bond funds led the way with inflows of $29.6 billion, while U.S. stock funds saw outflows of $8.3 billion. Investors continue to seek out higher-risk segments of the bond market. The multisector bond, bank loan, emerging-markets bond, nontraditional bond, world bond and high-yield bond categories each saw inflows of more than $1 billion.   

PIMCO topped all firms with inflows of $8.1 billion in October, led by PIMCO Total Return Bond, which took in $2.4 billion. DoubleLine Total Return took in $1.9 billion during the month and $17.9 billion year-to-date, making it the most popular mutual fund so far this year.     

Alternative funds have had the fastest organic growth rate of any asset class in 2012, collecting $12.4 billion in year-to-date inflows.   

To view Morningstar’s asset flows report, visit