Morningstar Reports U.S. Mutual Fund Asset Flows for June 2013

Morningstar, a leading provider of independent investment research, today reported estimated U.S. mutual fund asset flows for June 2013. Investors withdrew $43.8 billion from taxable-bond funds and $16.4 billion from municipal-bond funds, making June the worst month on record for bond funds in terms of total outflows. Long-term funds overall shed $47.3 billion, the largest monthly outflow since $105.6 billion in October 2008. Morningstar estimates net flows by computing the change in assets not explained by the performance of the fund.

Additional highlights from Morningstar's report on mutual fund flows:

• Intermediate-term bond funds lost $24.4 billion in June, dragged down by outflows of $9.6 billion from PIMCO Total Return. DoubleLine Total Return saw redemptions of $1.2 billion, its first monthly outflow. Other weak-performing bond categories included long government, emerging-markets bond, and inflation-protected bond.
• Not all fixed-income categories suffered in June and the year-to-date period. Bank-loan funds have collected more assets than any other category in 2013, and nontraditional bond has come in third.
• International-equity and alternative funds had net inflows in June. Among international-equity funds, Oakmark International, which has a Morningstar Analyst Rating™ of Gold, continued its string of strong inflows, collecting $753 million. The fund has doubled in size in the last year, absorbing nearly $5.0 billion and achieving a 35 percent return year to date.
• At the firm level, PIMCO led outflows, with redemptions of $14.5 billion, followed by Fidelity with $5.1 billion. Vanguard saw its first firm-level outflows (including exchanged-traded and money market funds) in nearly 20 years. MFS topped all providers with inflows of $1.4 billion.

To view the complete report, please visit http://www.global.morningstar.com/juneflows13. For more information about Morningstar Asset Flows, please visit http://global.morningstar.com/assetflows.