Morningstar: Fund flows slowing down?

International-equity and taxable-bond funds continued to lead the investment pack in May, according to Morningstar's latest fund flow report. At month’s end, international-equity had an estimated inflow of $24.0 billion, mostly into passive funds. While this continues to exhibit strong investor preference for passive investment strategies, the total international-equity inflow was lower than in previous months. Could this be the start of a slow down?

Taxable-bond funds continue to take in strong flows despite the looming possibility of the Fed raising short-term interest rates.

On the active side, U.S. equity funds continued to see outflows, albeit smaller than in April.

For Morningstar’s full report and analysis, please click here.