Mutual Fund Flows Bounce Back in July

August 13, 2012 ( - Long-term mutual fund flows were $24.6 billion in July, following just $10.8 billion in June.

According to Morningstar, the $13.8 billion increase in flows from June to July was primarily attributable to a spike in taxable bond inflows, which more than doubled to $23.6 billion.   

U.S. stock outflows declined slightly to $8.2 billion from $8.5 billion in June. If exchange-traded fund (ETF) inflows were included, then U.S. stock outflows were just $700 million in July.   

Diversified emerging-market equity funds took in over $1.3 billion in July, but momentum has been slowing since February when the category welcomed nearly $3.2 billion in new money.   

PIMCO ended Vanguard’s run at the top of the monthly leader board, absorbing nearly $6.6 billion in new money in July, led by its Total Return fund, which accounted for $2.1 billion in inflows. On the flip side, the American Funds extended its consecutive-outflows streak to 37 months, with nearly $4.2 billion exiting the family.  

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