In its latest report on monthly net mutual fund flows released Tuesday, Keefe, Bruyette & Woods analysts Robert Lee and Larry Hedden conclude that fixed-income flows appear to be decelerating, helped by municipal bond outflows in November.
Meanwhile, equity flows are showing some signs of life, with managers such as BlackRock, Franklin and T. Rowe Price generating at modestly positive equity fund flows during the month.
As muni-bonds negatively impacted bond outflows in November, international products contributed to positive inflows into equity funds. Overall, equity funds attracted close to $18 billion in the month, while fixed-income funds lost $2 billion, KBW reports.
Asset allocation and blend products continue to gather flows, Lee and Heeden conclude, as investors seek defensive-equity positions.