A Texas startup took the lead last month among micro fund firms as they bucked the industry outflows trend.

This article draws from Morningstar Direct data on May 2022 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 515 firms (down month-over-month from 524 in April 2022 but up year-over-year from 485 in May 2021) with less than $1 billion each in long-term fund AUM.

Micro fund firms had $95 billion in total long-term fund AUM as of May 31, 2022, accounting for 0.39 percent of overall industry long-term fund AUM. That compares with $98 billion and 0.4 percent on April 30, 2022, and with $94 billion and 0.42 percent on May 31, 2021.

229 of those micro fund firms brought in net inflows last month, down from 235 in April 2022 and 260 in May 2021.

STF Management took the lead last month, thanks to an estimated $172 million in net May 2022 inflows. Other big May 2022 inflows winners included: Regents Park, $160 million (up M/M from $7 million in April 2022); BMO, $149 million (up M/M from $65 million, up Y/Y from $14 million in May 2021 outflows); Mount Yale's Princeton, $100 million (up M/M from $32 million, up Y/Y from $2 million); and Campbell & Company, $100 million (up M/M from $39 million, up Y/Y from $1 million).

May 2022 featured at least three apparent mutual fund industry newcomers: Constrained Capital, Nia Impact Capital, and STFM.

After the first five months of 2022, Perpetual led the pack with an estimated $401 million in net year-to-date inflows. Other big YTD inflows winners included: ARGA, $243 million; and Curasset, $236 million.

On the flip side, EIP took the outflows lead last month, thanks to an estimated $109 million in net May 2022 outflows, down M/M from $41 million in April 2022 inflows but up Y/Y from negligible May 2021 outflows. Other big May 2022 outflows sufferers included: Semper, $102 million (down M/M from $142 million, down Y/Y from $68 million in net inflows); Liberty Street, $82 million (up M/M from $32 million, up Y/Y from $4 million); North Country, $73 million (up M/M from $4 million, up Y/Y from negligible outflows); and River Canyon, $73 million (down M/M from $117 million, down Y/Y from $121 million in net inflows).

As of May 31, Semper led the 2022 outflows pack thanks to an estimated $578 million in net YTD outflows. Other big outflows sufferers included: Cromwell, $405 million; and Liberty Street, $397 million.

As a group, micro fund firms brought in an estimated $662 million in net May 2022 inflows, equivalent to about 0.7 percent of their combined AUM. That compares with $1.156 billion and 1.18 percent in April 2022 and with $1.316 billion and 1.4 percent in May 2021.

In the first five months of 2022, micro fund firms brought in an estimated $3.132 billion in net YTD inflows. That's equivalent to 3.31 percent of their combined AUM.

Across the entire industry, the 787 firms tracked by the M* team (down M/M from 796 but up Y/Y from 760) suffered an estimated $39.103 billion in net May 2022 outflows, equivalent to 0.16 percent of the industry's $24.532 trillion in long-term fund AUM. (298 firms brought in net May inflows, down from 320 in April.) That's down M/M from $89.224 billion and 0.36 percent of $24.585 trillion of AUM in April 2022 and down Y/Y from $82.763 billion in net inflows and 0.32 percent of $26.156 trillion of AUM in May 2021.

Active funds suffered an estimated $109.837 billion in net May 2022 outflows, up M/M from $86.386 billion and down Y/Y from $11.451 billion in net inflows. Yet passive funds brought in an estimated $70.729 billion in net May 2022 inflows, up M/M from $2.838 billion in net outflows and down Y/Y from $71.312 billion.

After the first five months of 2022, the industry had suffered $46.598 billion in net YTD outflows, equivalent to about 0.19 percent of industry long-term AUM. 390 firms have brought in net inflows YTD. 

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