Editor s note: This is adapted from the Morningstar Direct U.S. Asset Flows Commentary for February 2021. Download the full report.
Rising interest rates and a swing in equity market leadership during February seemed to invigorate investors rather than scare them off. Long-term mutual funds and exchange-traded funds took in a record $144 billion in February, surpassing the previous mark of $132 billion set in January 2018. ETFs collected roughly $92 billion, driven by a move into passive equity funds, while open-end funds took in $53 billion, led by flows into actively managed fixed-income strategies.
Money flowed into Morningstar Categories that might weather an inflationary environment better than most, such as commodities broad basket and inflation-protected bonds. Prospects of a new federal stimulus package along with lower coronavirus case counts likely spurred optimism about future economic activity while sparking concerns about higher inflation.
IR be?
Unlike other industrial revolutions which tended to be local (think the UK’s massive steam-powered mills and factories in the North of England), the Fourth Industrial Revolution is well and truly global. Today’s advancements in interconnected technologies mean communicating and working with partners around the world has never been easier.
4IR looks like it could be one of the best investment opportunities because it is likely to touch all areas of the economy. When you’re using your smartphone to shop online, facetime a friend or relative, or use any app, you’re already feeling its effects.
Women make up 14% of all fund managers, and the U.S. lags behind that global average
Morningstar data show women are making little progress breaking into the ranks of portfolio managers.
March 12, 2021 5 MINS
Whatever progress women are making in the asset management industry, it is not yet showing up in the ranks of portfolio managers, where the percentage of women fund managers has been hovering around 14% for the past two decades.
Morningstar, which crunched the portfolio manager gender data in just about every way imaginable, showed that women fare slightly better when it comes to fixed income and passively managed index funds, but as a country, the United States continues to lag the global averages.