Bond funds took a big leap in September, with two tracking firms reporting heavy gains in flows for the fixed-income sector.
Bond funds gained another $32 billion, and were projected to amass over $300 billion in net inflows for the full year, exceeding the 2010 and 2011 pace, according to Strategic Insight, a business intelligence provider to the fund industry.
Morningstar reported similar figures, noting investors added $16.5 billion to long-term open-end funds, as inflows of $29.9 billion into taxable-bond funds overcame redemptions of $16.8 billion from U.S.-stock funds.
“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,” the Chicago-based research firm said Thursday.
Strategic Insight added that mutual fund investors, already adding more than $1 trillion to their bond fund holdings since the 2008 crisis, continued to search for income and safety in bond funds during September.