Investing May 16, 2013

Mutual Fund Inflows Moderate in April

May 16, 2013 (PLANSPONSOR.com) – Inflows for long-term mutual funds during April stood at a healthy $37.8 billion, according to a report from Morningstar, Inc.
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However, inflows continued to moderate from levels seen earlier this year. Inflows for U.S. equity funds slowed to $895 million, their lowest intake this year. Despite tepid interest in core, intermediate-term bond funds, taxable-bond funds overall took in $19.4 billion to mark their 20th consecutive month of inflows.

Morningstar data also showed: 

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  • International-equity funds saw the second-strongest inflows among category groups, with $8.4 billion. Relative to assets, alternative funds had the strongest organic growth rate among category groups, taking in $3.8 billion;
  • The bank-loan category attracted more assets than any other category in April, leading the taxable-bond category group for the third consecutive month. Assets in the category have risen 30% for the year to date;
  • Although taxable-bond funds have led all category groups in 2013, top asset-gathering categories within the group have shifted. Inflows for intermediate-term bond, high-yield bond, and emerging-markets bond funds have slowed from levels seen in 2012, while bank-loan and nontraditional bond funds have gained ground; and
  • Within the U.S. equity category group, investors continued to prefer index funds and the value style over growth. Including exchange-traded funds, active U.S. equity funds had outflows of $5.2 billion, compared with inflows to index funds of $9.6 billion in April.

 

The Morningstar report is available here. Also available are a video that recaps the March 2013 U.S. asset flow trends and more information about Morningstar Asset Flows.

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