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Most-Researched Investments in Morningstar Platforms Show Institutional Investors Interested in U.S. Equities in 2012; Individuals and Advisors Focused on Income, Risk Mitigation

Thursday, February 28, 2013

Most-Researched Investments in Morningstar Platforms Show Institutional Investors Interested in U.S. Equities in 2012; Individuals and Advisors Focused on Income, Risk Mitigation13:53 EST Thursday, February 28, 2013CHICAGO, Feb. 28, 2013 /PRNewswire/ -- Are institutional investors signaling a return to equities? According to a list of the most-researched investments in Morningstar's platforms in 2012, about half of the most-researched mutual funds, exchange-traded funds (ETFs), and separate accounts by institutional investors were domestic and international equities.  In January 2013, equity mutual funds saw inflows of $15.5 billion, the largest monthly intake to equity funds since 2004 and the first month of inflows to stock funds in nearly two years, according to Morningstar's U.S. mutual fund asset flows report. While institutional investors demonstrated interest in equity funds or strategies in 2012, advisors and individuals were focused on income and risk mitigation. Highlights of the most-researched investments in Morningstar platforms in 2012: Large-cap equity strategies led the list of most-researched separate accounts by institutional investors, including six of the top 10. Despite the institutional focus on equities, PIMCO Total Return Fund found a spot on the most-researched investment lists for individual investors, advisors, and institutions alike. The four most-viewed ETFs by individual investors, as well as six of the top 10, were from Vanguard, while iShares ETFs were researched most by advisors and institutional investors. Dividend focused ETFs were the most viewed investments among individual investors, while advisors showed particular interest in inflation-hedging ETFs, such as SPDR Gold Shares (GLD) and iShares Barclays TIPS Bond (TIP), as well as emerging-markets ETFs. "Individual investors and financial advisors have been focused on producing income and avoiding risk for the last four years. This is consistent across ETFs and open-end mutual funds based on our fund flows and investment search statistics," Paul Justice, director of fund research for Morningstar, said. "While their risk aversion is high, they seem to be making an exception for emerging market equities, which illustrates that whatever risk appetite remains is focused overseas.""However, institutional investors are telling a different story," Justice added. "They seem to be demonstrating an affinity for domestic equities across the capitalization spectrum as well as international stocks. It's also interesting to note that institutional investors searching the separate account space focused almost exclusively on active strategies last year. Perhaps the lower negotiated prices of separate accounts for large managers indicate that investors still have an appetite for active management, but only at a competitive price."Morningstar compiled the list by totaling the most-researched mutual funds, exchange-traded funds (ETFs), and separate accounts from Jan. 1, 2012 through Dec. 31, 2012 on Morningstar Direct, its global investment analysis platform for institutional investors.  Morningstar also assembled a list of the most-researched mutual funds and ETFs from Morningstar.com, the company's site for individual investors, and Morningstar Advisor Workstation, its investment planning and research platform for financial advisors, for the same time period. Most Researched Investments 2012?Individual Investors (Morningstar.com):Mutual FundsFund NameTicker SymbolVanguard Dividend Growth InvVDIGXPIMCO Total Return Instl PTTRXVanguard Wellesley Income InvVWINXFidelity New Markets IncomeFNMIXVanguard Equity-Income InvVEIPXDodge & Cox IncomeDODIXVanguard Wellington InvVWELXLoomis Sayles Bond RetailLSBRXT. Rowe Price Capital AppreciationPRWCXT. Rowe Price Equity IncomePRFDXETFsETF NameTicker SymbolVanguard Dividend Appreciation ETFVIGVanguard High Dividend Yield Index ETF VYMVanguard REIT Index ETFVNQVanguard MSCI Emerging Markets ETFVWOSPDR S&P DividendSDYSPDR Gold SharesGLDALPS Alerian MLP ETFAMLPVanguard Energy ETFVDEVanguard Health Care ETFVHTWisdomTree Emerging Markets Equity Income ETFDEMMost Researched Investments 2012?Financial Advisors (Morningstar Advisor Workstation):Mutual FundsFund NameTicker SymbolTempleton Global Bond ATPINXPIMCO Total Return APTTAXAmerican Funds Growth Fund of America AAGTHXFranklin Income AFKINXOppenheimer Developing Markets AODMAXFirst Eagle Global ASGENXAmerican Funds Capital World Growth & Income ACWGIXBlackRock Global Allocation Inv AMDLOXAmerican Funds Capital Income Builder ACAIBXPermanent PortfolioPRPFXETFsETF NameTicker SymbolSPDR Gold SharesGLDiShares Barclays TIPS Bond TIPVanguard Dividend Appreciation ETFVIGVanguard MSCI Emerging Markets ETFVWOiShares S&P U.S Preferred Stock IndexPFFiShares MSCI Emerging Markets IndexEEMiShares MSCI EAFE IndexEFASPDR S&P 500SPYVanguard REIT Index ETFVNQiShares iBoxx $ Invest Grade Corporate BondLQDMost Researched Investments 2012?Institutional Investors (Morningstar Direct):Mutual FundsFund NameTicker SymbolPIMCO Total Return InstlPTTRXDodge & Cox International StockDODFXHarbor International InstlHAINXOppenheimer Developing Markets AODMAXDodge & Cox StockDODGXFidelity ContrafundFCNTXTempleton Global Bond ATPINXT. Rowe Price Growth StockPRGFXVanguard 500 Index SignalVIFSXT. Rowe Price Equity IncomePRFDXETFsETF NameTicker SymbolSPDR S&P 500SPYVanguard FTSE Emerging Markets ETFVWOiShares MSCI EAFE IndexEFAiShares MSCI Emerging Markets IndexEEMSPDR Gold SharesGLDiShares Barclays TIPS BondTIPiShares Russell 2000 IndexIWMiShares Barclays Core Total U.S Bond Market ETFAGGiShares iBoxx $ High Yield Corporate BondHYGiShares Russell 1000 Growth IndexIWFSeparate AccountsStrategy NameSchafer Cullen High Dividend Value EquityThe London Co. Small CapPolen Large Cap GrowthWinslow Capital Management Large Cap GrowthWedgewood Concentrated Large Cap GrowthCS McKee Value EquityNuveen Intermediate-Term MunicipalAIM Private International ADR GrowthDana Large Cap EquityWHV International EquityAbout 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 approximately 416,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 9 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 $149 billion in assets under advisement and management as of Dec. 31, 2012. The company has operations in 27 countries.The above is for information purposes only and should not be considered a solicitation to buy or sell any security or to participate in a managed separate account program noted. ©2013 Morningstar, Inc. All rights reserved. MORN-PMedia Contact:Shawn Malayter 312-696-6050, shawn.malayter@morningstar.com SOURCE Morningstar, Inc.