Fund Flows Reverse Course in June

August 1, 2006 ( - Mutual funds had outflows of $2.7 billion in June, a stark change from the $5.3 billion in inflows the month before, according to data from the Financial Research Corporation.

The FRC data shows that International/Global funds dropped from its top spot in May, when they drew in $10.1 billion in net inflows (See Fund Flows Slow to Trickle in May ). The lead position in June was held by Tax-Free Fixed Income Funds, which posted net outflows of $25 million.

By Morningstar category, Large Blend funds outperformed all other asset categories with $3.4 billion in net inflows, followed by Foreign Large Blend ($2.1 billion), Large Growth ($2.06 billion), Foreign Large Value ($1.28 billion) and Short Government ($1.27 billion).

The best selling fund group was State Stree Global Advisors, with $5.87 billion in inflows, followed by American Funds, which had $3.1 billion in inflows, and Eaton Vance Distribution, with nearly $1.5 billion in inflows.

Two State Street Global Advisors funds held the top selling spots in June – its SPDR Trust fund pulled in almost $2.6 million in assets, while SSgA’s DIAMONDS Trust 1 pulled in nearly $2 million.