Mutual Funds Updates

The company will begin converting assets to nine Morningstar funds approved by the SEC.

Like others, the asset manager sees opportunity in providing financial advisors with investment management solutions.

Bond funds overall eked out a minimal inflow last week, even as investors continue to pull money from high-yield and emerging market bond funds.

Emerging markets equity funds started July with the biggest weekly redemptions in almost two and a half years.

The latest redemptions from European equity funds extend their current outflow streak to 17 weeks; investors remain leery of the political trends even as the economy improves.

Investors who shifted to index-based ETFs and mutual funds have generally been rewarded in the first half of 2018, as most actively managed funds failed to keep up with the cheaper alternatives despite the belief we’re in a “stock picker’s market.”

Despite election results and currency weakness, emerging market investors are attracted to markets that seem excessively cheap or offer a reform story.

In the second quarter of 2018, mortgage-backed bond and bank loan funds attract investors, while high-yield and emerging markets debt bleeds money.

Freed from a long-only constraint, long/short managers have greater flexibility to search for alpha. But we found only one fund that beat out a typical 60/40 core portfolio.

U.S. equity funds extended their longest run of inflows since 2013 as investors continue to pull money from most other developed markets.