Morningstar Reports U.S. Mutual Fund and ETF Asset Flows for June 2016

Active U.S. equity funds suffer largest monthly outflow since October 2008

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Jul 18, 2016, 03:18 ET

CHICAGO, July 18, 2016 /PRNewswire/ -- Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) asset flows for June 2016. Active U.S.-equity funds posted an estimated $21.7 billion in outflows in June as all active category groups—except municipal bond—saw outflows for the month. Meanwhile, all passive category groups experienced inflows, except for alternatives. Morningstar estimates net flow for mutual funds by computing the change in assets not explained by the performance of the fund and net flow for ETFs by computing the change in shares outstanding.

Highlights from Morningstar's report about U.S. asset flows in June:

While Britain's vote regarding its exit from the European Union dominated the news in June, it had little effect on flows: investors withdrew $56 million from international equity funds while the MSCI Europe, Australasia, and Far East (EAFE) Index declined 3.4 percent in June.
Flows into commodities spiked again in June, fueled by precious-metals funds, with the majority of flows into gold ETFs. SPDR Gold Shares led the way with an estimated net inflow of $3.5 billion.
The intermediate-term bond and foreign large blend fund categories garnered the most flows for the second month in a row, taking in $10.8 billion and $5.8 billion, respectively.
Of the top 10 U.S. fund families, State Street and Vanguard were the only firms to see flows into active strategies in June, raking in $238 million and $3.3 billion, respectively. Vanguard and BlackRock/iShares led flows into passive strategies during the month, with $16.8 billion and $9.9 billion, respectively.
American Funds American Balanced, which has a Morningstar Analyst Rating™ of Silver, led flows into active funds in June, garnering $1.2 billion during the month.

To view the complete report, please click here. A video summarizing asset flow activity in June is available at http://bit.ly/Q22016flows. For more information about Morningstar Asset Flows, please visit http://global.morningstar.com/assetflows.

The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

About Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 525,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on nearly 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement and management as of March 31, 2016. The company has operations in 27 countries.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts' current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar's expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a fund's or the fund's underlying securities' creditworthiness. This press release is for informational purposes only; it should not be considered an offer or solicitation to buy or sell the mutual funds noted within.

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SOURCE Morningstar, Inc.