CHICAGO, June 18, 2013 /PRNewswire/ -- 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.
To view the complete report, please visit http://www.global.morningstar.com/mayflows13. To view a video recapping March's U.S. asset flow trends, please visit http://bit.ly/may2013flows. For more information about Morningstar Asset Flows, please visit http://global.morningstar.com/assetflows.
The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. References to and commentary on the above mentioned mutual funds should not be considered a solicitation to buy or sell that fund.
About Morningstar, Inc. Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individuals, financial advisors, and institutions. Morningstar provides data on approximately 422,000 offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 9 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and has approximately $157 billion in assets under advisement and management as of March 31, 2013. The company has operations in 27 countries.
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