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FYI: Something big is happening. A striking 18 Morningstar 500 funds suffered outflows of at least 40% of assets under management in the trailing 12 months ended February 2016, 61 shed 25% or more, and 168 had outflows of 10% or more. Regards, Ted http://news.morningstar.com/articlenet/article.aspx?id=747879
This is actually pretty stunning. I'd bet Russell Kinnel did a double-take, if not a triple, on some of these. From a Barron's blog note on this report:
Each year, editors at Morningstar pick the best 500 funds from the universe of roughly 8,000 that they cover and create a list known as the Morningstar Mutual Fund 500. Nearly half of these funds have seen at least a 10% decline in assets under management in the 12 months ended February. Some 61 have seen at least a 25% drawdown, while another 18 have seen at least a 40% reduction in assets. Here’s Kinnel:
“If we had just endured a brutal bear market, then the wave of redemptions would be par for the course. But this comes after a tremendous equity rally and therefore is unprecedented.”
Comments
From a Barron's blog note on this report: http://blogs.barrons.com/focusonfunds/2016/04/07/unprecedented-outflows-from-u-s-stock-funds-could-leave-remaining-investors-holding-the-bag/?mod=BOLBlog
Of course, doesn't this suggest just how little worth a great many investors find in M* recommendations?