Small fund firms' outflows increased eleven-fold last month as one ETF boutique's massive inflows almost disappeared.
| Catherine Wood
ARK Investment Management, LLC
Founder and Chief Executive Officer
This article draws from Morningstar Direct
data on May 2020 ETF and open-end mutual fund flows, excluding money-market funds and funds-of-funds. More specifically, this article focuses on the 151 firms with between $1 billion and $10 billion each in long-term fund and ETF AUM. 61 of those firms gained net inflows in May, up from 57 in April
took the lead last month, thanks to an estimated $700 million in net May inflows, up from $596 million in April. Other big May inflows winners included: GQG
, $434 million (up from $260 million); Polen
, $407 million (down from $584 million); Grayscale
, $347 million (up from $199 million); and U.S. Global Investors
, $277 million (down from $298 million).
, which led the small fund firm back in March
and April — thanks to net inflows of $2.911 billion and $3.361 billion, respectively — saw its estimated net inflows plunge to $29 million in May.)
Proportionately, U.S. Global Investors led the small fund firm pack last month, thanks to estimated net May inflows equivalent to 19.7 percent of its AUM, down from 28.3 percent in April. Other big May inflows winners included: GQG, 13 percent (up from 9.2 percent); Ark, 11.5 percent (down from 12.5 percent); Graniteshares
, 9.2 percent (up from 5.1 percent); and Grayscale, 9.2 percent (down from 6.2 percent).
On the flip side, May was a rough month for Causeway
, which suffered an estimated $956 million in net outflows, more than any other small fund firm and up from $187 million in April. Other big May outflows sufferers included: Credit Suisse
, $889 million (up from $581 million); KraneShares
, $644 million (up from $115 million); FMI
, $532 million (up from $519 million); and Milleis Investissements Funds
, $463 million (down from $242 million in net inflows).
Proportionately among small fund firms, Milleis had the roughest May, thanks to estimated net outflows equivalent to 24 percent of its AUM, down from 9.6 percent net inflows. Other big May outflows sufferers included: KraneShares, 23.1 percent (up from 3.5 percent); LSV
, 17.6 percent (up from 7.7 percent); Credit Suisse, 12.4 percent (up from 7.2 percent); and Causeway, 12 percent (up from 2.2 percent).
As a group, the 151 small fund firms suffered an estimated $4.026 billion in net May outflows, equivalent to 0.83 percent of their combined AUM. That's up from $371 million in March. Put another way, small fund firms' combined net outflows rose by $3.655 billion last month, even as last month's inflows winner (the aforementioned USCF) saw its net inflows plunge by $3.332 billion last month.
Across the entire industry, the 763 fund firms tracked by the M* team brought in a combined $33.001` billion in net May inflows, equivalent to 0.17 percent of their combined AUM. (That's up from $16.388 billion in net April inflows.) Active funds brought in an estimated $17.995 billion in net May inflows (up from $21.202 billion in net April outflows), while passive funds brought in an estimated $15.006 billion in net May inflows (down from $37.598 billion in April).
Editor's Note: A prior version of this story gave the wrong total number of fund firms. The correct total is 763.
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