Mon, 2 Sep 2013
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Munis have faced both interest rate and credit risk pressures, but at current levels, this varied asset class is worth considering, especially for those in higher tax brackets, say Morningstar's Candice Lee and Eric Jacobson.
August saw continued big bond - fund redemptions and a divergence of institutional and individual investor flows in emerging-markets funds.
September and third-quarter asset-flows data show that investors remain cautious of interest-rate risk and a fully valued stock market, and instead prefer nontraditional bonds and foreign equities.
As economic concerns weighed, taxable- bond funds were the strongest asset gainers in May, but their inflows were only about half what they were the prior month, says Morningstar's Kevin McDevitt.
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