A brokerage giant's mutual fund and ETF inflows more than tripled last month as large firms' net flows as a group improved by more than $20 billion in a month.

Jonathan Christian de St. Paer Charles Schwab Investment Management, Inc. President, CEO

This article draws from Morningstar Direct data for July 2022 mutual fund and ETF flows, excluding money market funds and funds of funds. (Other asset management products, like collective trusts and SMAs, are also not included.) More specifically, this article focuses on the 23 firms with between $100 billion and $500 billion each in long-term fund AUM (up from 22 firms in June 2022 but down from 24 firms in July 2021).

Large fund firms had a combined $4.778 trillion in long-term fund AUM as of July 31, 2022, and they accounted for 19.77 percent of overall industry long-term fund AUM. That compares with $4.431 trillion and 19.43 percent on June 30, 2022, and with $5.097 trillion and 18.95 percent on July 31, 2021.

Seven large fund firms brought in net long-term inflows last month, up from four in June 2022 but down from 17 in July 2021.

Charles Schwab kept the inflows lead last month, thanks to an estimated $4.605 billion in net July 2022 inflows, up month-over-month from $1.4 billion in June 2022 and up year-over-year from $3.585 billion in July 2021. Other big July 2022 inflows winners included: TIAA's Nuveen, $1.316 billion (up M/M from $304 million in net outflows, down Y/Y from $4.01 billion); DFA, $764 million (up M/M from $127 million, up Y/Y from $278 million in net outflows); American Century (including Avantis), $326 million (down M/M from $362 million, up Y/Y from $231 million); and Edward Jones' Bridge Builder, $176 million (down M/M from $243 million, down Y/Y from $989 million).

Schwab also still leads the 2022 large fund firm inflows pack, thanks to an estimated $22.68 billion in net year-to-date inflows as of July 31. Other big YTD inflows winners included: Bridge Builder, $7.537 billion; and First Trust, $5.654 billion.

On the flip side, Franklin Templeton took the outflows lead last month, thanks to an estimated $2.723 billion in net July 2022 outflows, down M/M from $5.347 billion in June 2022 and down Y/Y from $3.471 billion in July 2021. Other big July 2022 outflows sufferers included: Prudential's PGIM, $2.672 billion (down M/M from $3.115 billion in net inflows, down Y/Y from $733 million in net inflows); Morgan Stanley (including Eaton Vance and Calvert), $1.506 billion (down M/M from $2.555 billion, down Y/Y from $343 million in net inflows); Lord Abbett, $1.481 billion (down M/M from $3.135 billion, down Y/Y from $1.989 billion in net inflows); and Ameriprise's Columbia Threadneedle, $1.47 billion (down M/M from $1.72 billion, down Y/Y from $657 million in net inflows).

Allianz's Pimco still leads the 2022 large fund firm outflows pack YTD, thanks to an estimated $29.975 billion in net 2022 outflows as of July 31. Other big outflows sufferers included: Franklin, $26.666 billion; and Lord Abbett, $16.357 billion.

As a group, large fund firms suffered $8.793 billion in net July 2022 outflows, equivalent to 0.18 percent of their combined AUM and accounting for 67.69 percent of overall industry outflows. That compares with $29.598 billion in net June 2022 outflows, equivalent to 0.67 percent of AUM and accounting for 48.28 percent of industry outflows, and with $16.278 billion in net July 2022 inflows, equivalent to 0.32 percent of AUM and accounting for 21.12 percent of industry inflows.

Large fund firms have suffered an estimated $118.678 billion in net 2022 outflows as of July 31. That's equivalent to 2.48 percent of their combined AUM and accounts for 96.45 percent of industry outflows.

Across the entire industry, the 784 firms tracked by the M* team (down M/M from 791 but up Y/Y from 774) suffered an estimated $12.991 billion in net July 2022 outflows, equivalent to 0.05 percent of their combined $24.166 trillion in AUM. That's down M/M from $61.306 billion and 0.27 percent of AUM and down Y/Y from $77.077 billion in net inflows and 0.27 percent of AUM.

Active funds suffered an estimated $58.766 billion in net July 2022 outflows, down M/M from $90.45 billion and down Y/Y from $14.693 billion in net inflows. Yet passive funds brought in $45.732 billion in net July 2022 inflows, up M/M from $29.219 billion but down Y/Y from $57.431 billion.

So far in 2022, as of July 31, long-term funds and ETFs have suffered $123.051 billion in net outflows. That's equivalent to 0.51 percent of their combined AUM. 

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