Morningstar released a statement that in 2016, $19.3 billion was pulled BlackRock’s U.S. based actively managed mutual funds, which makes for a record high as the investment industry struggles to restrain an exodus to lower-cost investments. “The funds posts nearly $8.5 billion in outflows during the fourth quarter, the research service said,” according to the statement.
Through November in 2016, U.S.-based actively managed stock funds suffered $288 billion in withdrawals, which is the largest on record, according to Thompson Reuters Lipper service. “On the passive side, stock index mutual funds and equity exchange-traded funds each attracted about the same amount of new cash, more than $112 billion apiece in 2016, Lipper said.
As BlackRock, Inc. (NYSE: BLK) has been working to boost its stockpicking manager’s investing performance by incorporating more data mining and rules- based investment techniques, there are withdrawals on the active funds. In November, performance showed signs of improvement. The percentage of BlackRock funds holding the top Morningstar star ratings over three increaased 13 percent, from 51 percent to 64 percent.