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In 2012, flows to fixed interest funds dominated

Morningstar's inaugural Annual Global Flows Report shows balanced or multi sector funds in Australia attracted the largest net inflows in 2012, mainly into industry funds. Alternative funds also did well, as investors suffering from the sharemarket losses of 2011 sought uncorrelated and absolute returns.

However, Australian share funds were heavily hit by withdrawals, losing $9.7 billion over the year. With the rally in the second half of 2012 and into 2013, it again demonstrates that investors often give up at the worst time possible. Much of the money went into fixed interest, cash and term deposits.

Morningstar reported that the Australian funds industry had much in common with other countries, in particular the withdrawals from share funds and flows to fixed interest. PIMCO now manages US$442 billion of fixed income, making it the largest actively managed strategy.

 


 

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