Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today published its third annual Global Flows Report examining worldwide 2014 mutual fund and exchange-traded product (ETP) asset flows. At the end of 2014, global open-end and ETP assets stood at nearly $30 trillion, up from $27 trillion in 2013. Net inflows totaled a
Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today published its third annual Global Flows Report examining worldwide 2014 mutual fund and exchange-traded product (ETP) asset flows. At the end of 2014, global open-end and ETP assets stood at nearly $30 trillion, up from $27 trillion in 2013. Net inflows totaled a record $1.3 trillion, compared with less than $1 trillion in 2013, and global equity funds accounted for approximately one-third of these inflows, $439 billion.
“U.S. equity markets posted respectable returns in 2014, but most other global markets did not fare as well. Economic headwinds in Europe diminished returns for equity investors in that region, while the appreciation of the U.S. dollar negatively affected U.S. investors in funds domiciled in other countries,” Alina Lamy, senior markets analyst for Morningstar, said. “If 2013 was the year when investors finally regained confidence in worldwide equity markets, 2014 seems to have been a year dominated by interest rates. As the search for yield becomes ever more challenging in the global fixed-income space, investors still appear to value the lower volatility of bonds. Despite extremely low yields, fixed-income funds collected $371 billion.”
Highlights from Morningstar’s Global Flows Report include:
The Morningstar Global Flows report is based on assets reported by more than 3,000 fund groups across 74 domiciles. In total, more than 89,000 fund portfolios encompassing more than 200,000 share classes are represented. 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.