Funds Hit With Substantial May Setback
A news release from the Financial Research Corporation (FRC) said May’s lackluster performance was a dramatic collapse from the $27.6 billion inflow seen in April. Leading the way among fund types in May were international/global offerings which ended the month ahead by $2.39 billion.
The FRC said all other fund types were in the red in May with corporate bond funds getting smacked with a $5.56 billion outflow, while tax-free bonds had a $5.37 billion loss. Government bond funds had a $2.28 billion giveback for the period. On the equity side, domestic equity funds had a $449 million outflow
Per Morningstar fund category, it was Moderate Allocation funds leading the way in May with a $2.98 inflow ($27.2 billion YTD). Large-Cap value offerings were next in line with a $1.65 billion intake ($21.8 billion YTD) while Foreign Large-Cap Blend funds were ahead by $1.57 billion ($13.2 billion YTD). Bank loan was next at $1.29 billion in May ($3.21 billion YTD) while World Allocation funds showed a $1.16 advance ($8.32 billion YTD).
Fund Families
Vanguard Group and Fidelity Investments maintained the top fund group spots in May with $654 billion and $637 billion, respectively. Behind the two sizeable fund families in the total asset race were:
- American Funds – $534 billion
- Franklin Distributors Inc. – $192 billion
- PIMCO Funds – $151 billion.
The five best sellers in May were American Funds with an inflow of $5.3 billion, Barclays Global Investors Funds’ increase of $2.13 billion, Dodge and Cox with a $769 million advance, The Vanguard Group with an increase of $581 billion, and Dimensional Fund Advisors at $573 million.
Top Sellers
The five best selling individual funds in May were:
- American Funds Growth Fund – $1.2 billion
- American Funds Balanced – $954 million
- American Funds Cap Income Builder – $618 million
- Rydex Juno Fund – $609 million
- American Funds Income Fund – $584 million