Morningstar Reports U.S. Mutual Fund Asset Flows Through May 2013

Chicago, IL - 18 June 2013

Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund asset flows through May 2013. Investors added another $38.6 billion to long-term mutual funds in May, led by taxable-bond funds with inflows of $21.1 billion. Morningstar estimates net flow by computing the change in assets not explained by the performance of the fund. Click here for a full explanation of Morningstar's methodology.

Additional highlights from Morningstar's report on mutual fund flows:

  • Despite investors' continued preference for fixed income, the composition of inflows to the asset class has shifted. Weak flows into intermediate-term bond funds mark a clear shift in investor behavior from 2012, when the category dominated inflows. Investors have sought out less interest rate-sensitive bond sectors recently, like nontraditional bond and bank-loan funds.
  • U.S. equity funds saw outflows of $659 million in May, driven by redemptions of $1.9 billion from large-growth funds. However, with inflows of $8.5 billion, international-equity funds remained in favor, led by diversified emerging-markets funds.
  • Municipal-bond funds saw net redemptions for the third consecutive month while money market funds collected new assets of $27.2 billion, their first monthly inflow of 2013.
  • Vanguard led all providers in May. Franklin Templeton also had a strong month, driven by inflows into Templeton Global Bond. While PIMCO remained in second place in terms of fund family flows, its $2.5 billion intake in May was its weakest showing for the year to date.

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