Morningstar Reports U.S. Mutual Fund Asset Flows for May 2014

Chicago, IL - 13 June 2014

Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund asset flows for May 2014. Investors added $23.4 billion to long-term mutual funds in May. With the stock market at all-time highs, equity investors continued to show more interest in international and sector funds than their domestic counterparts. Additional transfers of assets from mutual funds to collective investment trusts (CITs) at Fidelity contributed to some of the $6.9 billion outflow from U.S.-equity funds, but market appreciation kept assets in the category group at near-record levels. 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:

  • Taxable-bond funds attracted new assets of $9.5 billion in May, their fifth straight month of inflows following seven months of redemptions, beginning with record outflows of $44.4 billion in June 2013. Meanwhile, municipal-bond fund inflows of $3.7 billion in May were their strongest in 16 months, yet total assets in these funds remain below levels reached a year ago. 
  • Foreign large blend led all categories with inflows of $3.9 billion in May; among international categories, India Equity enjoyed the fastest organic growth rate. After 21 months of inflows, the bank-loan category suffered its second month of outflows in May, shedding $1.7 billion, while high-yield bond funds attracted $1.7 billion. 
  • The intermediate-term bond category enjoyed its third consecutive month of inflows. While PIMCO has lost market share in the category, Metropolitan West Total Return Bond, which has a Morningstar Analyst Rating™ of Gold, Gold-rated Dodge and Cox Income, and Silver-rated T. Rowe Price New Income have each gained share over the past year and had strong flows in May.

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