Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) asset flows for September 2014. Long-term mutual funds and ETFs attracted $9.0 billion of new investor cash during the month. Active taxable-bond funds registered their most significant monthly outflow since June 2013, $18.7 billion, spurred by the Sept. 26, 2014 announcement of Bill Gross’ departure from PIMCO. Outflows from PIMCO Total Return aside, taxable-bond funds have otherwise seen relatively consistent inflows year to date. Morningstar estimates net flow for mutual funds by computing the change in assets not explained by the performance of the fund and net flow for ETFs by computing the change in shares outstanding.
Additional highlights from Morningstar’s report about U.S. asset flows in September:
• Active and passive U.S. equity fund flows continued to move in opposite directions—active U.S. equity funds saw outflows for the seventh consecutive month, and passive U.S. equity funds collected inflows for the eighth consecutive month.
• Among passive funds, all categories except commodities funds saw inflows in September, most notably U.S. and international-equity offerings. Total passive flows were larger than total active flows for the seventh straight month.
• The three active funds with the heaviest outflows during the month were PIMCO funds formerly managed by Bill Gross, which lost a little more than $23.3 billion. Two intermediate-term bond funds that appeared to be reaping the benefits of investors seeking alternatives to PIMCO include Metropolitan West Total Return Bond, which has a Morningstar Analyst Rating™ of Gold, and unrated Fidelity® Series Investment Grade Bond. On the passive side, Vanguard Total Bond Market Index also collected large sums of fixed-income-oriented money.