Investing June 30, 2006

Fund Flows Slow to Trickle in May

June 28, 2006 (PLANSONSOR.com) - Mutual funds experienced net inflows of $5.3 billion in May, according to data from the Financial Research Corporation (FRC).
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The increase was meager compared to April’s $31.5 billion and March’s $28.3 billion in net inflows (See FRC: April Asset Flows Pick Up ).

FRC data shows that International/Global funds again led the way with a $10.1 billion intake. However, that was offset by a net outflow from domestic equity funds in the amount of $4.4 billion. Government bond funds also saw a net outflow in May of some $1.2 billion.

By Morningstar category, Foreign Large Blend topped the charts with a $4.1 billion intake, followed by Small Blend funds with a net inflow of $2 billion.

American Funds topped all fund groups with $4.9 billion in net inflows, followed by Barclays Global Investors at $3.1 billion. Putnam Investments and American Century Investments reported net outflows of $2.3 billion and $2 billion, respectively.

American Funds also had the top selling fund, as its Capital World Growth & Income fund took in over $1.3 billion in May. Vanguard’s Total Stock Index fund and American Funds Growth Fund of America similarly took in around $1.3 billion each.

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