It was a year in which passive funds kicked in the teeth of active funds, while Vanguard
ruled over them all, for the third year in a row.
released today the November 2013 flow figures
, which also included year-to-date figures.
The year may not be over yet, but Vanguard trounced the rest of the competition so much, garnering three-times the year-to-date flows of the number two firm that, baring some unprecedented miracle in mutual fund marketing, the index giant takes the crown. This will be the firm's third year in a row winning the honor, according to Morningstar
. Vanguard has been first or second in terms of annual inflows by provider since 1994.
Here are the rankings in terms of flows for November, and Year-to-Date:
3. T. Rowe
4. Goldman Sachs
2. Dimensional Fund Advisors
5. Goldman Sachs
All in all, it was a healthy year for the industry. Morningstar
reports that long-term mutual funds attracted inflows of $14.5 billion during the month to bring year-to-date inflows to $258.8 billion, a pace that should make 2013 the strongest for yearly inflows since 2009. Robust inflows combined with equity-market appreciation have pushed mutual fund assets to a record $10.8 trillion, up 30 percent since the peak seen in October 2008 prior to the financial crisis.
It was of course a good year for passive funds. Combining mutual funds and exchange-traded funds, funds in the U.S. equity Morningstar Category group have seen inflows of $121.1 billion in the year to date. according to the research firm. More than 100% of the net inflows are from passive funds, as active funds have had outflows of $10.0 billion. The outflows from active funds have been focused on large and growth style funds, while active value and small have actually had inflows.
It was also a good year for alts. Alternative mutual funds saw record inflows of $37.1 billion for the year to date, a 41 percent organic growth rate. The category group had inflows virtually every month over the past five years, but assets in the group make up just 1.2 percent of long-term mutual fund assets. Eight funds in the alternative category group had year-to-date inflows of more than $1.0 billion.
Read more in the Morningstar November 2013 flow figures
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