Many small fund firms generated large inflows for the month of June. Exchange Traded Concepts, LLC (ETC), Chiron Investment Management, and Kraneshares were all big winners in the under $1 billion AUM range.

The fund flow information within this article was formulated from exclusive data provided to MFwire by Alina Lamy, a senior analyst of quantitative research at MorningStar.

Out of the 547 fund firms with AUMs under $1 billion, ETC placed first in terms of total net inflows for the month of June, taking the first place spot from KraneShares in May, racking in an estimated $153.52 million. Coming in second was Chiron Investment Management with estimated net open-ended mutual fund and ETF inflows of $142.07 million. Chrion moved to second place from fifth place in May with a 49.54 percent increase in inflows. In third place was KraneShares, which is being acquired by China International Capital Corperation (USA) Holdings, Inc. (CICC), with estimated net inflows of $137.01 million. Two other big winners for the month of June included: AlphaCentric, with estimated inflows of $77.31 million, and GuideMark, with estimated inflows of $71.32 million.

Jonathan Krane KraneShares CEO

The firm that had the best relative inflows in the under $1B bracket for June was Redwood Investment Management with estimated inflows that were 68.16 percent of its total AUM. Coming in second was RWC Partners with estimated inflows that were 38.21 percent of its total AUM. Other winners in terms of relative inflows included: TrimTabs, with 34.86 percent; Giralda Funds, with 33.65 percent; and Investment Managers Series, with 31.85 percent.

As for outflows, out of the 547 fund firms with less than $1B AUM, 289 fund firms, roughly 52 percent, experienced outflows which is more than all the other fund firm brackets for the month of June. The firm that suffered the most was EntrepreneurShares LLC, with estimated net open-ended mutual fund and ETF outflows of $50.85 million. Oakseed also suffered, with estimated outflows of $48.78 million. Other firms that also suffered from heavy outflows included: SilverPepper, with estimated outflows of $43.52 million; Absolute Strategies, with estimated outflows of $38.77 million; and Thomas White, with estimated outflows of $29.26 million.

The small fund firm with the most relative outflows in June was Oakseed with outflows that were 170.49 percent of its month-end AUM (It suffered $48.7 million in outflows and ended up with $28.6 million in AUM by the end of June). KKM Financial comes in second with estimated outflows that were 129.11 percent of its total AUM. Other small fund firms that also suffered big relative outflows included: SilverPepper, with 20.23 percent; EntrepreneurShares, with 19.89 percent; and Chartwell Investments, with 15.64 percent.

Industry wide, long-term active mutual funds generated net inflows of $1.758 billion in the month of June. This is a significant decrease in inflows compared to the $9.745 billion generated in May. The inflows in passive funds also decreased from $59.05 billion in May to $56.41 billion in June. Money market funds also took a big hit last month, experiencing estimated net outflows of about $25.097 billion.

Within long term active mutual funds, bond funds generated net inflows of $17.018 billion. International equity funds generated estimated inflows of $4.577 billion. In contrast, U.S. equity funds and sector equity funds together generated outflows of $16.275 billion and alternative, allocation, and commodities funds generated estimated total outflows of $3.562 billion.

Together, the total amount of inflows generated by both passive and active funds in June was about $58.174 billion. All the fund firms in the under $1B AUM bracket combined generated total estimated net inflows of $989.318 million, which was 1.7 percent of the industry total.

The information garnered above regarding general industry performance was extracted from research conducted by Chicago-based research specialist MorningStar, who released its "MorningStar Direct Asset Flows Commentary: United States" report for June 2017. Lamy Penned the report.  

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