The Standard & Poor's 500 roared to a 1.98% gain in January, and investors yawned. The first winning January since 2013 should have cheered investors: A winning January agurs an up year 80% of the time. Yet U.S. stock funds saw a net inflow of just $20 million in January, while taxable bond funds saw $18.9 billion in net new cash, according to Morningstar. For the past 12 months — a time in which the S&P 500 jumped 20.0%, including reinvested dividends — investors have yanked $147.3 billion from U.S. stock funds, while lavishing taxable bond funds with $146.9 billion of new money. Investors had slightly more love for international stock funds, which saw a net inflow of $5.6 billion in January. Muni bond funds had an inflow of $3.9 billion. All other categories — sector equity, allocation, alternative and commodity — saw net outflows. In a surprise to no one, Vanguard saw the largest inflow in January, raking in $31.8 billion. In the past 12 months, the fund company has seen an estimated net inflow of $196.8 billion. Other fund companies saw more modest inflows in January. The American Funds welcomed $1.5 billion in new money, and Dimensional Fund Advisors saw $3.6 billion roll in the door. Fidelity Investments, however, watched $5 billion head for the exits. A flood of money — $14.5 billion — streamed from actively managed funds in January, while $38 billion flowed into passively managed long-term funds. Who was doing all the selling? The non-proprietary distribution channel, which Morningstar defines as "Fund share classes sold primarily through active broker/dealers who have licensing agreements with the fund company." That channel saw $15.8 billion flee from all Morningstar categories. Institutional funds welcomed $16.3 billion in net new cash.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
