Money Flows Into Funds in June

July 29, 2004 ( - Stock and bond mutual funds recorded a net inflow of $16.2 billion in June, due to strong inflows into domestic equity offerings.

Domestic equity mutual funds experienced an $18.1 billion inflow in June to lead all categories, while other inflows – $4.9 billion – were noted in international/global mutual funds.   Bond funds headed in the opposite direction for the month, as government, tax-free and corporate bond funds had outflows of $3.4 billion, $3.3 billion and $182 million, respectively, according to data aggregated by financial services consulting firm Financial Research Corporation (FRC).   The net flow numbers includes data on exchange-traded funds (ETFs).

By Morningstar category, the largest net inflows were recorded in moderate allocation funds ($4 billion), followed by large cap blend ($3.8 billion), large cap value ($3.2 billion), small cap blend ($2.1billion) and mid-cap value ($2.1 billion).   For the year, moderate allocation funds have picked up $32.6 billion, large cap value funds have gained $25.7 billion and foreign large cap blend funds have added $15.2 billion.

Per fund family, American funds had the largest inflow of the month ($6 billion), followed by State Street Global Advisors ($4.5 billion), Vanguard Group ($2.7 billion), Barclays Global Investor Funds ($2 billion) and ProFunds Advisors ($1.6 billion).   Year-to-date, American funds have picked up $50 billion in net new assets, while Vanguard group has tacked on $35.8 billion and Barclays has recorded inflows of $20.6 billion.

June’s performance was a reversal from May’s $11.2 billion outflow. In May,outflows were noted in corporate bond funds (-$5.56 billion), tax-free bonds (-$5.37 billion), government bond funds (-$2.28 billion) and domestic equity funds had a (-$449 million) (See  Funds Hit With Substantial May Setback ).