Thu, 9 May 2013
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After strong flows into stock funds earlier this year, investor interest in equities is waning as bond funds remain in high demand, says Morningstar's Mike Rawson.
The benchmark index doesn't reflect the true allocations of U.S. bond investors, and the industry needs to look again at corporate- bond index funds or rework the current index, says Vanguard founder Jack Bogle.
Investors should dig into their bond portfolios to understand all the places their managers are hunting for yield, says Morningstar's Eric Jacobson.
Income-hungry investors sought out niche fixed-income funds like bank-loans and non-traditional bonds in the first quarter, while the so-called great rotation into stocks is not yet confirmed.
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