Long-term fund industry AUM has fallen by $3.742 trillion in the last twelve months, with more than 78 percent of that drop coming from the very biggest fund firms. Meanwhile, passive inflows and active outflows both fell by billions last month.
This article draws from Morningstar Direct
data for August 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 eight firms with more than $500 billion each in long-term fund and ETF AUM (the same as in July 2022
but down from nine in August 2021
Jumbo fund firms had $15.71 trillion in long-term fund AUM as of August 31, 2022, and they accounted for 67.04 percent of overall industry long-term fund AUM. That compares with $16.25 trillion and 67.24 percent on July 31, 2022, and with $18.633 trillion and 68.57 percent on August 31, 2021.
Four of those jumbo fund firms brought in net inflows in August 2022, the same as in July 2022 but down from six in August 2021.
took the lead last month, thanks to an estimated $17.495 billion in net August 2022 inflows, up month-over-month from $9.605 billion in July 2022 but down year-over-year from $24.021 billion in August 2021. Other big August 2022 inflows winners included: BlackRock
(including iShares), $3.667 billion (down M/M from $16.855 billion, down Y/Y from $22.532 billion); and SSGA
, $3.134 billion (up M/M from $4.757 billion in net outflows, down Y/Y from $13.208 billion).
Yet BlackRock still leads the 2022 jumbo fund firm inflows pack so far, thanks to an estimated $83.895 billion in net year-to-date inflows as of August 31. The only other YTD inflows winners so far were: Vanguard, $79.06 billion; and Fidelity
, $14.085 billion.
On the flip side, T. Rowe Price
kept the jumbo firm outflows lead last month, thanks to an estimated $4.761 billion in net August 2022 outflows, down M/M from $7.053 billion in July 2022 but up Y/Y from $1.414 billion in August 2021. Other big August 2022 outflows sufferers included: Fidelity, $1.793 billion (down M/M from $755 million in net inflows, down Y/Y from $11.11 billion in net inflows); and Capital Group's American Funds
, $1.616 billion (down M/M from $3.11 billion, down Y/Y from $1.793 billion).
T. Rowe also still leads the 2022 jumbo firm outflows pack so far, thanks to an estimated $38.592 billion in net outflows YTD as of August 31. Other big outflows sufferers included: Capital Group, $19.335 billion; and Invesco
, $2.395 billion.
As a group, the eight largest fund firms brought in an estimated $15.262 billion in net August 2022 inflows, equivalent to 0.1 percent of their combined AUM and accounting for 316.9 percent of industry inflows. That's up M/M from $11.751 billion and 0.07 percent of AUM but down Y/Y from $77.596 billion and 0.42 percent of AUM.
Jumbo fund firms brought in a combined $111.087 billion in net inflows in the first eight months of 2022, equivalent to 0.73 percent of their combined AUM.
Across the entire industry, the 784 firms tracked by the M* team (up Y/Y from $776) brought in an estimated $4.816 billion in net August 2022 inflows, equivalent to 0.02 percent of their combined $23.433 trillion in AUM. That's up M/M from $12.991 billion in net outflows and 0.05 percent of AUM, but down Y/Y from $97.458 billion in net inflows and 0.35 percent of AUM.
Active funds suffered an estimated $33.062 billion in net August 2022 outflows, down M/M from $58.766 billion and down Y/Y from $19.829 billion in net inflows. Yet passive funds brought in $37.845 billion in net August 2022 inflows, down M/M from $45.732 billion and down Y/Y from $77.739 billion.
As of August 31, long-term funds and ETFs have suffered $121.156 billion in net 2022 outflows. That's equivalent to 0.52 percent of their combined AUM.
This caveat is particularly important for jumbo fund firms, many of which are big players in the 401(k) business, where collective investment trusts (CITs) are a commonly used alternative to traditional mutual funds. For example, as the T. Rowe team revealed on Tuesday, in August 2022 their clients transferred about $1.5 billion out of T. Rowe mutual funds and into other T. Rowe products like CITs and SMAs. And T. Rowe is a big retirement plan provider and DC I-O asset manager, especially in the target-date fund (TDF) space.
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