Municipal Bond Fund Performance and Estimated Net Flows for May 2018

Municipal debt funds rose 0.99% on average for the month of May after declining 0.25% for April. The single-state municipal debt funds macro-group climbed 1.03% on average for May, while general & insured municipal debt funds added 1.12% to their April month-end values. Lipper’s High Yield Municipal Debt Funds classification (+1.28%) posted the strongest return of the national municipal debt fund classifications. Of the single-state offerings, the California Municipal Debt Funds classification posted the strongest return for the month, gaining 1.29% on average.

Source: Lipper

On the estimated fund flows side of the equation investors were net purchasers of municipal debt funds (+$1.3 billion) for May, injecting net new money for the second month in three. Three of the four municipal debt fund macro-groups experienced net inflows for May, with investors padding the coffers of high yield municipal debt funds (+$947 million), general & insured municipal debt funds (+$690 million), and short/intermediate municipal debt funds (+$36 million), while single-state municipal debt funds (-$414 million) handed back the only net redemptions. Lipper’s Other States Muni Debt Funds classification (-$192 million) suffered the largest net redemptions of all the muni classifications for the month.

Source: Lipper