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December 24, 2015 at 07:49 AM
Morningstar says active funds remain out of favor with investors, who withdrew nearly $35 billion from such mutual funds and ETFs in November. For the past 12 months, investors have pulled more than $175 billion out of the active category.
Meanwhile, passive funds attracted close to $31 billion in November and have drawn close to $435 billion in positive flows since November 2014.
“Despite the encouraging outlook, investors withdrew $19.7 billion from active U.S. equity funds in November,” said Alina Lamy, a senior analyst with the research group in last week’s report on fund flows.
In the week ending Dec. 16, net redepemptions all funds were $28.6 billion, according to the Investment Company Institute, the biggest weekly outflow since June 2013. Some of the outflows likely reflect year-end tax-loss selling, ICI says, noting that about investors withdrew some $11 billion from stock funds and $12 billion from bond funds.
Which active fund families are suffering as a result of recent investor behavior? PIMCO’s. The bond shop’s outflows were roughly $4.5 billion in November and stand at $105.4 billion for the 12 months ended Nov. 30, Morningstar reports.
Franklin Templeton had active-fund outflows of $3.7 billion in November, and the fund group has seen 12-month outflows of $27.2 billion. Meanwhile, Fidelity Investments had outflows of $2.5 billion last month and $8.4 billion for the year ending Nov. 30.
The news is not all bad for PIMCO, according to Morningstar.
