Equity Loses, Fixed Income Gains on Brexit Possibility

Will Brexit fears affect your clients 401(k)?

Will Brexit fears affect your clients 401(k)?

Fears across the pond have fixed income funds flying high.

Research behemoth Morningstar reported U.S. mutual fund and exchange-traded fund (ETF) asset flows for May. Investors continued to allocate money to fixed income, with taxable- and municipal-bond funds attracting $15.4 billion and $8.2 billion, respectively.

International-equity funds sustained outflows across the board, active and passive, prompted by concerns over Britain’s potential exit from the European Union. Morningstar estimates net flow for mutual funds by computing the change in assets not explained by the performance of the fund and net flow for ETFs by computing the change in shares outstanding.

Highlights from Morningstar’s report about U.S. asset flows in May:

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