Vanguard Bucks the Trend on Outflows in November
However, American and Fidelity are still in net redemptions.
Investors slowed their redemptions but still took out a net $41 billion in November following a gargantuan $111 billion in October redemptions, according to flow estimates from Morningstar Market Intelligence. (The figures exclude ETFs, money markets, and funds of funds.)
Net outflows declined in all six of Morningstar's broad asset classes. Taxable-bond funds suffered the greatest outflows, with $13 billion coming out following $33 billion in October.
Although most asset classes lost money in November, they did so at much more moderate rates, thus leading to the more moderate redemptions. Even so, $41 billion is a huge number for an industry accustomed to a few billion in positive net flows in a typical month. International stock funds suffered $10 billion in net redemptions following a $20 billion outflow. U.S. equity funds shed $8 billion versus $34 billion. Balanced funds had net outflows of $7 billion versus $16 billion. Muni-bond funds shed $2 billion versus $9 billion. Alternative outflows fell to about $600 million from $1.6 billion.
Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.