It is well known that investors' attitude toward risk changed immensely during and after the bear market of 2007-2008. The shift toward safer fixed-income choices and a reduced reliance on equity funds is seen in the flows data.

For example, in 2008, investors withdrew nearly $73 billion net from equity funds (after a net purchase of $179 billion the year before), and added $64 billion to taxable and municipal debt funds. The following year saw bonds continue to draw more attention than equities. A paltry $5 billion net was added to equities funds, while the pair of bond fund groups took in a whopping $465 billion net (all flow figures include ETFs).

Register or login for access to this item and much more

All Bank Investment Consultant content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access