CHICAGO, May 14, 2012—Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund asset flows through April 2012. Inflows to long-term funds reached $20.8 billion in April, down from $29.3 billion a month earlier. Despite declining yields, taxable-bond funds continued to dominate inflows, taking in another $16.9 billion in April. The asset class has collected $96.9 billion year to date and remains roughly on track to match 2009’s record inflows of $282.5 billion.
Additional highlights from Morningstar’s report on mutual fund flows:
• On a relative basis, inflows for bond funds in recent years surpass the assets that flowed to equity funds during the height of their popularity in the late 1990s. Taxable-bond funds have absorbed $728.2 billion since January 2009, and total taxable-bond fund assets have nearly doubled.
• While U.S.-stock funds shed $214.9 billion overall during the last three years, the actively managed subset fared even worse, losing nearly 15% of their beginning assets. American Funds Growth Fund of America potentially skews the flow data for actively managed U.S.-stock funds, though, as outflows of about $58.9 billion the fund has experienced over the past three years represent 22% of all actively managed U.S.-stock outflows.
• In contrast to the broad trend, J.P. Morgan’s asset base has grown by 2.5 times in the past three years to $158.2 billion, due in no small part to the success of the firm’s actively managed equity offerings. JPMorgan Large Cap Growth, JPMorgan Equity Income, and JPMorgan US Equity have collectively taken in $6.6 billion over the trailing 12 months.
• PIMCO Total Return led all funds in April with inflows of $2.7 billion, the fund’s strongest month since August 2010.
To view the complete report, please visit http://www.global.morningstar.com/aprilflows12. To view a video recapping April’s U.S. fund flow trends, please visit http://bit.ly/aprilflows. For more information about Morningstar Asset Flows, please visit http://global.morningstar.com/assetflows.
The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
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 more than 380,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 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 investment management subsidiaries and has more than $190 billion in assets under advisement and management as of March 31, 2012. The company has operations in 27 countries.
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