Morningstar Direct SM U.S. Open-end Asset Flows Update

Transcription

1 August 2012 Data through July 31 Morningstar Direct SM U.S. Open-end Asset Flows Update U.S. Open-End Funds Also inside: Extended tables... 3 Taxable Bond Funds continue to Rule the Roost by Kevin McDevitt, CFA, Editorial Director Long-term mutual fund flows bounced back in July with $24.6 billion in inflows following just $10.8 billion in June. The $13.8 billion increase was driven primarily by a spike in taxable bond inflows, which more than doubled to $23.6 billion from $10.9 billion in June. U.S. stock outflows declined slightly to $8.2 billion from $8.5 billion. If ETF inflows are included, then U.S. stock outflows were just $700 million. International stock inflows were flat for the month, although diversified emerging-market equity funds took in over $1.3 billion. However, momentum has been slowing since February when the category welcomed nearly $3.2 billion in new money. Inflows for municipal bond funds remained steady at $5.5 billion, which is close to the group s long-term range. Somewhat surprisingly, money market funds turned in their strongest month of the year, collecting a robust $30.6 billion. July marked the group s first substantial inflows since December s $37.2 billion. Estimated Net Flows $Mil* July 2012 YTD One Year Assets $Bil U.S. Stock (8,249) (51,284) (116,068) 3,318 Sector Stock 570 4,818 1, International Stock ,320 11,485 1,249 Balanced 2,082 20,374 9, Taxable Bond 23, , ,038 2,330 Municipal Bond 5,512 33,723 44, Alternative 1,108 6,571 11, Commodities (133) 2,712 4, All Long Term 24, , ,790 8,693 Money Market 30,629 (131,530) (8,223) 2,504 *Includes liquidated and merged funds. Source: Morningstar Direct Asset Flows. Within the taxable bond asset class, investors continued to demonstrate their taste for credit risk. High-yield bond funds accounted for nearly $4.7 billion of the group total. That s the fourth largest inflow during the past 12 months. But illustrating how risk tolerances have changed, it s also the fourth largest high-yield monthly inflow over the past 10 years. The multisector and emerging-markets bond categories were also in the top five for taxable bond inflows with $2 billion and $1.9 billion, respectively. If ETFs are included, emerging-markets bond funds had record inflows of $2.7 billion. To learn more about Morningstar Direct, visit us at this link. For weekly updates about the fund industry, check Fund Times on Morningstar.com each Thursday afternoon. Notes: The figures in this report were compiled August 9, 2012, and reflect only the funds that had reported net assets by that date. The figures in both the commentary and the extended tables are survivorship-bias free. Calamos and Reich & Tang are not included Morningstar, Inc. All rights reserved.

2 Top-10 Open-End Fund Families Ranked by July 2012 Estimated Net Flow Excludes money markets and funds of funds Estimated Net Flow $Mil Fund Family July YTD 2012 One Year 1-Year OGR* % AUM $Bil PIMCO 6,583 28,252 31, Vanguard 6,466 64,730 79, ,473 Principal 2,217 5,453 6, DoubleLine 1,614 14,405 21, JPMorgan 1,551 15,158 17, T. Rowe Price 1,196 13,058 14, Lord Abbett 1,192 6,992 8, MFS 1,061 8,152 10, Franklin Templeton 904 6,641 6, TIAA-CREF 787 4,000 8, Source: Morningstar Direct Asset Flows PIMCO just barely ended Vanguard s run at the top of the monthly leader board, absorbing nearly $6.6 billion in new money. Flagship fund PIMCO Total Return led the way with $2.1 billion in inflows, while sibling Unconstrained Bond bounced back from 12 consecutive months of outflows with over $500 million in inflows. DoubleLine Total Return Bond followed PIMCO Total Return with $1.4 billion in inflows. On the flip side, the American Funds extended its consecutive-outflows streak to 37 months with nearly $4.2 billion exiting the family. Excluding GMO Quality, American Funds Growth Fund of America once again led all funds with nearly $2.6 billion in outflows. The best that can be said for Growth Fund of America is that the pace of outflows slowed from the $4.7 billion that exited the fund last December Morningstar, Inc. All rights reserved.

3 Morningstar Direct SM Publishing Date: Page 1 of 6 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo YTD 1 Large Blend (2,373) (2,779) (13,539) (17,559) 1, , Intermediate-Term Bond 8,993 8,993 58,007 80,940 1, Large Growth (1,727) (1,737) (14,685) (38,770) Large Value (969) (969) (10,814) (21,733) Foreign Large Blend ,335 (5,711) Moderate Allocation (799) (12,226) World Stock (1,467) (1,473) (1,499) (11,294) World Allocation ,400 11, High Yield Bond 4,652 4,652 21,002 28, Short-Term Bond 2,397 2,397 18,355 20, Mid-Cap Growth (818) (818) (2,945) (12,142) (0.90) Diversified Emerging Mkts 1,348 1,296 16,454 23, Mid-Cap Blend (1,035) (1,035) (2,384) (7,176) (0.05) Conservative Allocation 1,261 1,261 11,649 12, World Bond ,846 7, Multisector Bond 2,033 2,033 10,016 10, Small Blend (605) (649) (2,635) (6,362) (0.69) Intermediate Government ,202 9, Muni National Interm 1,481 1,481 8,938 13, Foreign Large Growth ,841 1, Small Growth (252) (280) (2,950) (7,240) (1.27) Inflation-Protected Bond ,770 7, Mid-Cap Value (481) (481) (743) (2,882) Foreign Large Value (18) (18) 5,696 8, Muni National Long ,740 4, Muni National Short ,658 11, Small Value (589) (2,205) (0.83) High Yield Muni 1,377 1,377 8,086 8, Emerging Markets Bond 1,876 1,876 12,481 17, Bank Loan ,356 (7,739) Real Estate ,509 3, Nontraditional Bond (2,273) (8,806) Commodities Broad Basket (133) (133) 2,712 4, Health , Short Government (820) (145)

4 Morningstar Direct SM Publishing Date: Page 2 of 6 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo YTD 36 Ultrashort Bond ,649 2, Muni California Long Long-Term Bond ,028 1, Muni New York Long Muni Single State Long ,222 1, Natural Res (190) (190) (1,659) (3,383) (2.75) 42 Technology (203) (203) (522) (1,690) (0.88) Global Real Estate 2 2 1,747 2, Equity Energy (349) (2.65) 45 Equity Precious Metals (92) (92) (518) (1,251) (1.55) (16.17) 46 Long/Short Equity ,639 3, Foreign Small/Mid Growth (612) Foreign Small/Mid Blend (447) Utilities , Pacific/Asia ex-japan Stk 2 (172) 486 (487) Market Neutral Multialternative ,791 4, Aggressive Allocation (67) (67) (783) (1,596) Muni Single State Interm Europe Stock 4 4 (567) (1,302) Foreign Small/Mid Value (46) (46) Muni California Intermediate ,073 1, Currency Muni Pennsylvania Convertibles (69) (69) (947) (2,098) Long Government Muni New York Intermediate Managed Futures , (1.80) 64 Muni New Jersey Muni Massachusetts Diversified Pacific/Asia China Region (48) (71) (317) (768) (1.59) Muni Single State Short Latin America Stock (95) (95) (448) (1,121) (0.44) 70 Muni Ohio

5 Morningstar Direct SM Publishing Date: Page 3 of 6 Morningstar Categories Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Total Net Assets ($bil) Total Return 1-Mo YTD 71 Financial (38) (38) 0 (234) (0.17) Muni Minnesota Bear Market (229) (0.60) (14.84) 74 Communications (97) Japan Stock (15) (15) (380) (38) (3.33) Target Date Consumer Defensive Industrials (38) (38) (97) (330) (0.46) Target Date Target Date Consumer Cyclical (53) (53) (0.48) Miscellaneous Sector (6) (6) (0.95) Target Date Retirement Income India Equity (17) (17) (117) (327) (0.90) Target Date (4) (4) (35) (50) Target Date Target Date Target Date Target Date Trading-Inverse Debt (91) (91) (120) (258) (2.89) (9.76) 92 Target Date Trading-Inverse Commodities (4) (4.18) (0.98) 94 Trading-Miscellaneous (2.52) (17.41) Top 10 10,568 10,055 69,763 34,316 5, , All 24,634 23, , ,790 8, , Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 1 Vanguard 6,466 6,466 64,730 79,660 1, , American Funds (4,157) (4,157) (33,385) (71,051) Fidelity Investments ,631 (16,207) PIMCO 6,583 6,583 28,252 31, Franklin Templeton Investment Funds ,641 6,

6 Morningstar Direct SM Publishing Date: Page 4 of 6 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 6 T. Rowe Price 1,196 1,196 13,058 14, JPMorgan 1,551 1,378 15,158 17, Columbia (312) (312) (9,921) (14,917) BlackRock ,535 4, OppenheimerFunds , Dimensional Fund Advisors ,185 13, John Hancock (151) (151) (48) (1,242) Dodge & Cox (201) (201) (4,333) (9,690) Invesco , MFS 1,061 1,061 8,152 10, Janus (758) (758) (4,131) (7,203) Wells Fargo Advantage ,941 7, American Century Investments ,183 1, Hartford Mutual Funds (616) (616) (5,776) (11,785) Lord Abbett 1,192 1,192 6,992 8, Principal Funds 2,217 2,217 5,453 6, Harbor ,962 4, Legg Mason/Western , ING Retirement Funds (368) (387) (2,159) (4,215) Eaton Vance (769) (769) (4,315) (9,807) Goldman Sachs (136) (136) (901) (3,436) Federated , First Eagle ,245 5, Thornburg (141) (141) 1,795 2, Dreyfus Putnam (118) (118) (1,785) (4,478) AllianceBernstein (700) Ivy Funds ,024 2, Prudential Investments ,376 6, Nuveen GMO (524) (524) (590) (63) MainStay ,485 7, DWS Investments (163) (163) (2,740) (4,596) TIAA-CREF Mutual Funds ,000 8, USAA ,749 2,

7 Morningstar Direct SM Publishing Date: Page 5 of 6 Top Fund Families Ranked by Current TNA ($Mil) Rank Name Estimated Net Flow ($mil) Assets Under Management ($bil) 41 Oakmark , Natixis Funds ,877 3, Northern Funds , Schwab Funds Artisan ,084 1, Delaware Investments ,888 2, Russell (948) (948) (1,139) (1,194) Pioneer Investments (856) (856) (1,658) (2,531) DoubleLine 1,614 1,614 14,405 21, Royce (486) (486) (1,420) (3,386) Top 10 13,899 13,725 93,350 52,456 5, , Top 50 20,340 20, , ,772 7, , Other 4,294 3,673 28,692 24,495 1, , All 24,634 23, , ,267 8, , Asset Classes Name Estimated Net Flow ($mil) Assets Under Management ($bil) U.S. Stock (8,249) (8,738) (51,284) (116,068) 3, , Sector Stock ,818 1, International Stock 186 (82) 25,320 11,485 1, , Balanced 2,082 2,003 20,374 9, Taxable Bond 23,559 23, , ,038 2, , Municipal Bond 5,512 5,512 33,723 44, Alternative 1,108 1,108 6,571 11, Commodities (133) (133) 2,712 4, All Long Term 24,634 23, , ,790 8, , Morningstar Ratings Name Estimated Net Flow ($mil) Total Net Assets ($bil) QQQQQ 13,861 13, , ,419 1, , QQQQ 12,666 12, , ,040 3, , QQQ (3,135) (3,135) (48,809) (126,105) 2, , QQ (6,855) (6,855) (54,034) (95,223) Q (1,621) (1,621) (18,172) (34,306) Not Rated 9,717 8,876 68,082 98, Total 24,634 23, , ,790 8, ,