An institutional fixed income asset manager that's new to the mutual fund side of the business took the lead last month among the smallest fund firms.

Michael S. Gilmore Red Cedar Investment Management President, CEO

This article draws from Morningstar Direct data on November 2019 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. More specifically, this article focuses on the 507 firms (three more than in October) with less than $1 billion each in fund AUM. 212 of those firms gained net inflows last month, two fewer than in October.

Delta Dental of Michigan's Red Cedar took the pole position last month, bringing in an estimated $50 million in net November inflows. Other big November inflows winners included: ClearShares, $45 million (up from negligible net flows in October); ICM, $40 million (up from $3 million); Liberty Street, $33 million (down from $37 million); and Rational Funds, $32 million (down from $37 million).

Proportionately, setting aside apparent newcomers, Karner Blue Capital led the micro fund firm pack last month, with estimated net November inflows equivalent to 78.2 percent of its AUM, up from 17.8 percent in October. Other big November inflows winners included: ClearShares, 60 percent (up from negligible net flows); CSOP Asset Management, 34.9 percent (up from 11.5 percent); VolShares, 32.8 percent (up from negligible net flows); and Wellington Shields.

Apparent fund newcomers last month included: Coho Partners, Cornerstone, Red Cedar, and Xsquare Capital.

On the flip side, November was a rough month for Miller Investment, which suffered an estimated $73 million in net outflows, up from $6 million in October. Other big November outflows sufferers included: Deer Park, $56 million (down negligible net inflows); Coho, $43 million (down from $2 million in net inflows); Hodges, $32 million (up from $9 million); and Hancock Horizon, $29 million (up from $17 million).

Proportionately, Powell Capital suffered the most last month, with estimated net November outflows equivalent to 4,381 percent of its remaining AUM (i.e. its net outflows dwarfed the amount of fund AUM it had remaining afterwards. Other big November outflows sufferers included: Adalta, 103.5 percent (up from 0.8 percent); Morgan Dempsey, 93.3 percent (up from 37.6 percent); VanEck's Market Vectors, 24.5 percent (up from 6 percent); and Innovation Shares, 20.7 percent (up from negligible net flows.

As a group, the 507 fund firms with less than $1 billion each in fund AUM suffered $164 million in estimated outflows, equivalent to 0.18 percent of their combined AUM. That's down from $453 million in net flows and 0.5 percent of AUM in November.

Across the whole industry (M* tracked November flows from 766 firms, up from 765 in October), long-term mutual funds and ETFs brought in an estimated $55.224 billion in net November inflows, equivalent to about 0.27 percent of industry AUM (up from 0.15 percent). Passive funds brought in $55.119 billion in net November inflows (up from $38.42 billion), while active funds brought in $105 million in net inflows (up from $9.446 billion in net outflows). 

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