Outflows from midsize fund firms weakened substantially in 2019.

Mary Ellen Bolger Stanek Robert W. Baird & Co. Managing Director, Director of Asset Management

This article draws from Morningstar Direct data on December 2019 (and full-year 2019) open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. More specifically, this article focuses on the 81 firms with between $10 billion and $100 billion each in fund AUM. 35 of those firms gained net inflows in December (the same as in November), and 30 of them gained net inflows for 2019 (up from 25 in 2018).

Baird brought in an estimated $13.498 billion in net 2019 inflows, more than any other midsize fund firm and up from $4.337 billion in 2018. Other big 2019 inflows winners included: First Trust, $12.801 billion (up from $9.935 billion); DoubleLine, $10.343 billion (up from $3.714 billion in net outflows); Morgan Stanley, $9.691 billion (up from $6.753 billion); and J.P. Morgan's Six Circles, $9.329 billion.

Proportionately among midsize firms, Six Circles won the inflows race last year, thanks to estimated 2019 net inflows equivalent to 43.5 percent of its AUM. Other big 2019 inflows winners included: WCM, 26.3 percent (up from 21.4 percent); Mirae (including Global X), 22.9 percent (up from 22.2 percent); DWS' Xtrackers, 22.2 percent; and Baird, 20.7 percent (up from 9.2 percent).

The picture looked a little different in December. First Trust brought in an estimated $1.393 billion in net inflows in December, up from $1.267 billion in November and more than any other midsize fund firm. Other big December inflows winners included: Baird, $1.014 billion (up from $547 million); Edward Jones' Bridge Builder, $830 million (down from $1.03 billion); AllianceBernstein, $716 million (up from $519 million); and Xtrackers, $665 million (up from $122 million).

Proportionately, Xtrackers led the midsize fund firm pack last month, with estimated net December inflows equivalent to 4.1 percent of its AUM, up from 0.8 percent in November. Other big December inflows winners included: Mirae, 3.8 percent (up from 2.8 percent); WCM, 2.1 percent (down from 2.3 percent); Glenmede, 2 percent (up from 1.7 percent in net outflows); and Baillie Gifford, 2 percent (up from 1.3 percent).

On the flip side, 2019 was a rough year for Harris' Oakmark, which suffered an estimated $12.826 billion in net outflows, more than any other midsize firm and up from $6.626 billion in 2018. Other big 2019 outflows sufferers included: Waddell & Reed's Ivy, $8.017 billion (up from $6.142 billion); Harbor, $7.443 billion (down from $21.238 billion); AMG, $6.457 billion (up from $6.157 billion); and GMO, $6.022 billion (down from $10.13 billion).

Proportionately, AIG led the midsize outflows pack last year, suffering estimated net 2019 outflows equivalent to 29.2 percent of its AUM, up from 22.5 percent in 2018. Other big 2019 outflows sufferers included: AQR, 24.3 percent (down from 31.7 percent); AMG, 24 percent (up from 21.9 percent); Gamco, 19 percent (up from 18.7 percent); and Resolute's American Beacon, 18.4 percent (up from 4.2 percent).

Oakmark also led the December midsize outflows pack, with estimated net outflows of $1.219 billion, up from $898 million in November. Other big December outflows sufferers included: Guggenheim (including Rydex), $874 million (up from $279 million); AQR, $843 million (up from $30 million); GMO, $795 million (up from $313 million); and Nationwide, $710 million (down from $1.731 billion in net inflows).

Proportionately, Nationwide led the midsize outflows pack last month, suffering estimated net December outflows equivalent to 4 percent of its AUM, down from 8.6 percent in net inflows in November. Other big December outflows sufferers included: AQR, 3.8 percent (up from 0.1 percent); Rafferty's Direxion, 3.1 percent (up from 0.5 percent); Matthews Asia, 2.7 percent (up from 1.5 percent); and Guggenheim, 2.7 percent (up from 0.8 percent).

As a group, the 81 midsize fund firms suffered an estimated $31.087 billion in combined net outflows in 2019, equivalent to 1.1 percent of their combined AUM but down from $140.709 billion in 2018. 30 midsize firms brought in net inflows in 2019, up from 25 in 2018.

In December alone, the 81 midsize fund firms suffered an estimated $5.483 billion in net outflows, equivalent to 0.19 percent of their combined AUM and down from $362 million in net November inflows. 35 midsize firms brought in net inflows in December.

Across the entire industry, the 773 fund firms tracked by M* brought in a combined $419.312 billion in net inflows into long-term mutual funds and ETFs in 2019, equivalent to 2.02 percent of industry AUM. That's up from $162.401 billion in 2018. 353 firms generated net 2019 inflows.

In December alone, the industry brought in an estimated $67.673 billion in net inflows, equivalent to 0.33 percent of industry AUM and up from $55.224 billion in November. Passive funds brought in an estimated $72.573 billion in net inflows in December (up from $55.119 billion in November), while active funds suffered $5.009 billion in net outflows (down from $105 million in net inflows). 

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