Global asset allocation funds off to slow start in 2013

Mutual fund net flows in April totaled $38.4 billion, down from $46.7 billion in March. During the same period, ETF flows hit $8.2 billion, down from $16.1 billion.

By asset class, mutual fund assets in April broke down as follows:

• U.S equities: $3.9 trillion or 38.4 percent of the total
• Taxable bonds: $2.6 trillion or 26.1 percent
• International equities: $1.5 trillion or 15.2 percent
• Allocation: $962.4 billion or 9.6 percent
• Municipal bond: $597 billion or 5.9 percent
• Sector equity: $323.8 billion or 3.2 percent
• Alternatives: $104.6 billion or 1 percent
• Commodities: $52.1 billion or 0.5 percent

The report shows that 52 percent of asset managers classify global tactical asset allocation products as "alternatives" as opposed to "traditional" investments (48 percent). In 2012, 37 percent of asset managers flagged the products as alternatives versus 63 percent traditional.

Glob asset allocation mutual funds experienced the most product development in 2011 and 2012, with 52 new funds brought to market, the report shows.