Morningstar Reports U.S. Mutual Fund Asset Flows Through January 2013

Tue Feb 12, 2013 3:26pm EST

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CHICAGO,  Feb. 12, 2013  /PRNewswire/ -- Morningstar, Inc. (NASDAQ: MORN), a
leading provider of independent investment research, today reported estimated
U.S.  mutual fund  asset flows through  January 2013. Investors added  $86.5
billion  to long-term open-end mutual funds in January, and 72 of 93 open-end
categories recorded inflows. Combined with inflows of  $28.6 billion  for
exchange-traded funds, it was by far the largest one-month inflow on record. All
asset classes and each of the top-10 open-end fund providers saw long-term fund

"Market observers have been waiting for a sign that the multi-year trend of
investors buying fixed income while selling U.S. stocks would reverse in a
so-called 'great rotation,'" said  Mike Rawson, fund analyst on Morningstar's
passive funds research team. "Inflows of  $15.5 billion  for U.S.-stock funds,
the largest monthly intake since 2004, and the first month of inflows in the
last 23 for active U.S.-stock funds, support this development. However,
U.S.-stock funds experienced slower organic growth than any other major asset
class in January, and seasonal and one-time factors such as lump-sum
contributions to retirement accounts and acceleration of dividend payments
indicate that claims of a paradigm shift in investor behavior may be premature."

Additional highlights from Morningstar's report on mutual fund flows:

* Continuing a trend that has persisted for more than four years and
demonstrating that investors have not abandoned fixed income, the
intermediate-term bond category had the greatest inflows in January with  $10.5
* Taxable-bond funds led all asset classes with inflows of  $31.0 billion  in
January, followed by international-stock funds, which took in  $18.4 billion 
during the month.  
* Vanguard topped all fund families in January with overall inflows of  $17.6
billion, 87 percent of which flowed to the firm's passive lineup. Vanguard funds
swept the top three spots for fund-level inflows, led by Vanguard Total Bond
Market's inflows of  $4.3 billion. American Funds saw its first monthly inflow
since  June 2009.

To view the complete report, please visit For more information about
Morningstar Asset Flows, please visit

The information contained herein: (1) is proprietary to Morningstar and/or its
content providers; (2) may not be copied or distributed; and (3) is not
warranted to be accurate, complete, or timely. Neither Morningstar nor its
content providers are responsible for any damages or losses arising from any use
of this information. Past performance is no guarantee of future results.

About Morningstar, Inc.  
Morningstar, Inc. is a leading provider of independent investment research in 
North America,  Europe,  Australia, and  Asia. The company offers an extensive
line of products and services for individuals, financial advisors, and
institutions. Morningstar provides data on more than 385,000 investment
offerings, including stocks, mutual funds, and similar vehicles, along with
real-time global market data on more than 8 million equities, indexes, futures,
options, commodities, and precious metals, in addition to foreign exchange and
Treasury markets. Morningstar also offers investment management services through
its registered investment advisor subsidiaries and has approximately  $195
billion  in assets under advisement and management as of  Sept. 30, 2012. The
company has operations in 27 countries.

©2013 Morningstar, Inc. All Rights Reserved.


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SOURCE  Morningstar, Inc.

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