Morningstar, Inc, a leading provider of independent investment research, today reported estimated U.S. mutual fund asset flows through April 2013. While April inflows for long-term mutual funds stood at a healthy $37.8 billion, they 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 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:
- 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 percent 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.
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.