Mutual Funds See Smallest Monthly Intake in May

Long-term mutual funds recorded their smallest monthly intake year to date in May, with $14.1 billion in new assets.

Among the broad asset classes, taxable-bond funds showed the greatest decline, from April inflows of $16.9 billion, to $7.7 billion in May, and U.S stock funds saw their 13th consecutive month of outflows, according to Morningstar data.

Although actively managed stock funds—both domestic and international—have suffered outflows of more than $172.3 billion over the past 12 months, a subset of these, dividend-focused equity-income funds, have bucked the trend and seen inflows of $21.7 billion over the same period.

After five straight months of strong inflows, high-yield bond funds saw net outflows of $1.2 billion in May as prices fell, but the magnitude of money leaving open-end funds was relatively small compared with past pullbacks.

Vanguard, led by inflows to its index funds, and JPMorgan had the greatest provider-level inflows during the month. However, MFS was a close third, fueled by inflows of $1.3 billion for MFS Value. American Funds notched its 35th consecutive month of outflows.

Although money market funds reversed four straight months of outflows, inflows were a negligible $1.4 billion in May.

The complete report is available here.