A subadvised fund firm in Maryland took the lead last month among the smallest fund firms.

This article draws from Morningstar Direct data on September 2019 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. More specifically, this article focuses on the 508 firms (four more than in August) with less than $1 billion each in fund AUM. 218 of those firms gained net inflows last month.

Advisors Preferred took the pole position last month, bringing in an estimated $69 million in net September inflows, up from $6 million in net August outflows. Other big September winners included: Deutsche Asset Management, $68 million (up from $14 million in net outflows); Palmer Square, $32 million (up from $18 million); Shenkman, $30 million (up from $5 million); and Rational Funds, $28 million (up from $7 million).

Proportionately, setting aside a brand new fund family, Deutsche led the micro fund firm pack last month, with estimated net September inflows equivalent to 85.73 percent of its AUM, up from 124.37 percent in net August outflows. Other big September winners included: Beyond Advisors IC, 73.94 percent; Acquirers Funds, 32.03 percent (up from negligible net flows); DDJ, 31.9 percent (up from negligible net flows); and Roundhill, 23.62 percent (down from 34.77 percent).

Karner Blue Capital was an apparent newcomer fund family in September.

Year-to-date through the end of September, Aperture led the pack with $347 million in estimated net inflows. Other big winners for the first three quarters of 2019 included: Infinity Q, $270 million; Graniteshares, $240 million; Bramshill, $232 million; and AAAMCO, $196 million.

On the flip side, September was a rough month for REX Shares' Microsectors, which suffered an estimated $118 million in net outflows, more than any other sub-$1-billion-AUM fund firm. Other big September sufferers included: Ppm America, $106 million (down from negligible net August flows); Destra, $52 million (down from $6 million in net inflows); Lyrical, $43 million (down from $104 million); and Dean Fund, $40 million (down from $2 million in net inflows).

Proportionately, CVR suffered the most last month, with estimated net September outflows equivalent to 136.43 percent of its AUM (i.e. its outflows were bigger than the AUM it had left over afterwards), up from 0.06 percent in August. Other big September sufferers included: Ppm, 44.7 percent (down from 0.03 percent in net inflows); Microsectors, 33.38 percent; Perkins, 25.14 percent (up from 14.83 percent); and Destra, 20.06 percent (down from 2 percent in net inflows).

Year-to-date through the end of September, Highland led the the micro fund firm outflows pack, thanks to an estimated $384 million in net outflows. Other big sufferers for the first nine months of 2019 included: Power Mutual Funds, $300 million; WBI, $247 million; Advisory Research, $212 million; and Lyrical, $187 million.

As a group, the 508 fund firms with less than $1 billion each in fund AUM suffered about $505 million in net September outflows, equivalent to about 0.55 percent of their combined AUM. That's up from $360 million in August.

Across the whole industry (M* tracks flows from 767 firms), long-term mutual funds and ETFs brought in $39.916 billion in net inflows in September, equivalent to 0.21 percent of industry AUM. That's up from $15.927 billion in net August outflows. Passive funds brought in $52.576 billion in net September inflows, while active funds suffered $12.66 billion in net outflows.

Year-to-date through September 30, micro fund firms suffered an estimated $266 million in net outflows, equivalent to 0.29 percent of their combined AUM. The overall industry has brought in $264.483 billion in net inflows YTD, equivalent to 1.36 percent of industry AUM. 

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