An ETF-focused startup took the lead last among the smallest fund firms, even as the group's net inflows fell 47 percent and as the group's AUM fell three percent.

Paul Kim Simplify Asset Management, Inc. CEO, Co-Founder

This article draws from Morningstar Direct data on November 2021 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. (Other asset management products, like CITs and SMAs, are also not included.) More specifically, this article focuses on the 499 firms (up from 481 in November 2020) with less than $1 billion each in long-term fund AUM.

Micro fund firms had $94 billion in total long-term fund AUM as of November 30, 2021, accounting for 0.34 percent of overall industry long-term fund AUM. That compares with $97 billion and 0.35 percent on October 31, 2021, and with $91 billion and 0.4 percent on November 30, 2020.

258 of those micro fund firms brought in net inflows last month, up from 254 in October 2021 and from 218 in November 2021.

Simplify took the lead last month among micro fund firms, thanks to an estimated $61 million in net November 2021 inflows, up month-over-month from $30 million in October 2021. Other big November 2021 inflows winners included: OneAscent, $50 million; Highland, $44 million (down M/M from $112 million, up year-over-year from $6 million in net outflows); Howard Capital Management, $44 million (up M/M from $28 million, up Y/Y from $3 million); and Distillate Capital, $42 million (up M/M from $41 million, up Y/Y from flat flows).

Last month included apparent newcomers: IDX, Inherent Wealth, and OneAscent.

Horizon Kinetics kept the 2021 lead as of November 30, thanks to an estimated $861 million in net year-to-date inflows. Other big YTD inflows winners included: Holbrook Holdings, $439 million; and Sprucegrove, $433 million.

The same three micro firms also led the pack for the 12-month period ending November 30, 2021: Horizon Kinetics with $861 million in net inflows, Holbrook with $460 million, and Sprucegrove with $433 million.

On the flip side, last month was a rough one for Liberty Street, which led the micro fund firm outflows pack thanks to an estimated $54 million in net November 2021 outflows, up M/M from $12 million in October 2021 and up Y/Y from $22 million in November 2020. Other big November 2021 outflows sufferers included: CBOE Vest, $53 million (up M/M from negligible outflows, down Y/Y from $7 million in net inflows); BTS, $46 million (up M/M from $14 million, up Y/y from $21 million); Coho, $36 million (down M/M from $1 million in net inflows, down Y/Y from $2 million in net inflows); and PIA Mutual Funds, $35 million (up M/M from $4 million, down Y/Y from $27 million in net inflows).

Sunbridge Capital Partners kept the 2021 micro outflows lead as of November 30, thanks to an estimated $1.701 billion in net YTD outflows. Other big outflows sufferers included: Muzinich, $403 million; and MainGate Trust, $297 million.

The same three firms also led the micro outflows pack for the 12-month period ending November 30, 2021: Sunbridge with $1.715 billion in net outflows, Muzinich with $407 million, and MainGate with $321 million.

As a group, micro fund firms brought in an estimated $691 million in net November 2021 inflows, equivalent to about 0.73 percent of their combined AUM and accounting for 0.85 percent of overall industry long-term inflows. That compares with $1.296 billion, 1.33 percent of AUM, and 1.55 percent of industry inflows in October 2021, and with $6 million, 0.01 percent of AUM, and 0.01 percent of industry inflows in November 2020.

YTD as of November 30, 2021, micro firms brought in $7.44 billion in net inflows, equivalent to 7.91 percent of their combined AUM and accounting for 0.66 percent of overall industry long-term inflows. And for the 12-month period ending November 30, 2021, micro firms brought in $7.995 billion in net inflows, equivalent to 8.5 percent of their AUM and accounting for 0.65 percent of industry inflows.

Across the entire industry, the 781 firms (up from 747 in November 2020) tracked by the M* team brought in a combined $80.955 billion in net long-term inflows in November 2021, equivalent to 0.3 percent of industry long-term AUM of $27.288 trillion. That compares with $83.864 billion in inflows and $27.795 trillion in AUM in October 2021, and with $112.028 billion in inflows and $22.769 trillion in AUM in November 2020.

Active funds suffered an estimated $2.051 billion in November 2021 outflows, down M/M from $5.324 billion in inflows and down Y/Y from $16.857 billion in inflows. Passive funds brought in $83.006 billion in November 2021 inflows, up M/M from $78.71 billion but down Y/y from $95.171 billion.

In the first 11 months of 2021, long-term funds brought in $1.123289 trillion in net inflows, equivalent to 4.12 percent of their combined AUM. And in the 12 months ending November 30, 2021, long-term funds brought in $1.223426 trillion in net inflows, equivalent to 4.48 percent of their AUM. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE