Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Flows Numbers Confirm a Fundamental Shift in Fund Buying Habits Not Rated 4.0 Email Routing List Email & Route  Print Print
Monday, November 22, 2010

Flows Numbers Confirm a Fundamental Shift in Fund Buying Habits

News summary by MFWire's editors

The revolution in how mutual funds are distributed has been felt on the ground for two years, and now that shift is being seen in the numbers. Shareholders are net sellers of retail equity shares, but that does not mean they are selling everthing. Indeed, they are net buyers of institutional share classes of equity funds in a move that is somewhat offsetting the redemptions, reports the Wall Street Journal Fund Track column.

Since 2009 that shift in buying habits is dramatic. Shareholders redeemed $162 billion from retail shares (think A-, B-, and C-shares) and another $55 billion from no-load funds. Meanwhile, insitutional share classes saw inflows of $72 billion. The numbers in the article came from Morningstar.

Insitutional shares are taking off due to their inclusion in 401(k) plans and their use in wrap accounts and broker-dealers at by fee-based financial advisors.

The shift jibes with the day-to-day reports from wholesalers and sales executives in the industry who are increasingly focused on fee-based advisors and the defined contribution investment-only channels.

Industry insiders have pointed to those two channels as areas of growth since the financial meltdown in 2008, now they may have some of the numbers they need to back up their instincts. 

Edited by: Sean Hanna, Editor in Chief


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

4.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use