Fund data complied by the Financial Research Corporation of Boston shows investors have been actively moving from equities to bonds, with intermediate-term bonds capturing the top spot of all Morningstar fund categories last year. These bonds drew almost $70 billion in net inflows, up from $40 billion in 2006.
Still, large-blend funds and foreign large-blend funds captured $63 billion and nearly $48 billion respectively. The large-blend category had inflows in 2006 of about $23 billion, though foreign large-blend was the winning category of that year with $53 billion of net inflows.
Target date funds continue to be popular with investors. On a combined basis, funds with target dates of 2000-2030 and beyond had total fund flows in 2007 of $58.07 billion. That’s a jump of about 70 percent from 2006, when target funds drew about $34 billion in fund inflows.
In December alone, stock and bond funds (including ETFs) had net inflows of $47 billion.
Excluding funds of funds data, American Funds is the large asset manager of 2007 with $1.15 trillion vs. the Vanguard Group with $1.09 trillion, according to FRC estimates. Fidelity is third with $929 billion.