The US equity mutual funds suffered their second-consecutive month of outflows in June, as investors withdrew US$8.3 billion, the category group’s largest outflow in 18 months, according to Morningstar.
Inflows to international-equity funds and taxable-bond funds more than offset the outflows for U.S. equity funds.
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In aggregate, investors added $24.0 billion to long-term mutual funds, helping assets reach $11.7 trillion, an increase of more than 40% from the peak before the financial crisis. Morningstar estimates net flow by computing the change in assets not explained by the performance of the fund.
Additional highlights from Morningstar’s report about mutual fund flows in June:
- For the year to date through June, international-equity funds led all Morningstar category groups with inflows of $67.5 billion. Taxable-bond funds have collected $59.2 billion over the same period, a significant increase from inflows of $21.0 billion for all of 2013. U.S. equity funds have gathered assets of just $9.5 billion year to date through June.
- At the category level, foreign large-blend funds led all categories in June with inflows of $4.6 billion. Multisector bond funds led all taxable-bond categories in June, followed by intermediate-term bond, a category that was shunned in 2013. Meanwhile, bank-loan funds shed $3.1 billion in June for their third-consecutive month of outflows.
- With inflows of $7.7 billion year to date through June, Dodge and Cox is off to its strongest start since 2007. Dodge and Cox International Stock, Dodge and Cox Global Stock, and Dodge and Cox Income, which each hold a Morningstar Analyst Rating of Gold, saw healthy flows in June; the first two have ranked in the top-5 percentile of their respective Morningstar categories over the trailing 12 months.
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