Mutual Funds Saw Lowest Monthly Intake in June

Long-term mutual funds recorded their lowest monthly intake year to date with just $10.8 billion in new money in June, according to data from Morningstar.

Money market funds saw outflows of $30.1 billion after tepid May inflows of $1.4 billion.   

Investors seem to have renewed their faith in municipal-bond funds and are increasingly comfortable taking on risk in search of yield, Morningstar said. High-yield muni bond funds took in $6.7 billion through June, as the category’s median return was 6.7% in the first half of the year.   

The balanced asset class, which includes primarily allocation funds, saw redemptions of $890 million in June, its first month of outflows in 2012. Some of the world-allocation category’s most prominent offerings suffered outflows; BlackRock Global Allocation, IVA Worldwide, and Ivy Asset Strategy lost $460 million, $232 million, and $171 million, respectively.   

Taxable-bond funds saw inflows increase by more than $3.2 billion over last month to $10.9 billion. U.S.-stock funds remained in familiar territory with outflows of $8.5 billion, while international-stock funds, driven by inflows to diversified emerging-markets funds, collected $4.8 billion.   

DoubleLine Total Return Bond led all funds in June with inflows of $2.1 billion. It leads all funds over the trailing 12 months, too, with $18.1 billion in new assets.    

The complete report is here.