In the Margins

Do investors hate active fund managers?

July 13, 2017

By Bloomberg

Investors haven’t soured on all active fund managers—only those who pick U.S. stocks. Actively managed mutual funds and exchange-traded funds that own domestic stocks experienced $98.5 billion in net redemptions in the first six months of 2017, according to the latest figures from Morningstar. Active funds that buy international stocks attracted inflows of $8.7 billion and active funds that buy bonds gathered $106.5 billion. “The trend for U.S. stocks funds keeps going and going,” said Russel Kinnel, director of manager research at Morningstar. “There is a perception that they can’t beat their benchmarks, especially when it comes to large-cap stocks.” Read the original story from Bloomberg.