An ETF shop increased its small fund firm inflows winning streak to seven months in November, even as outflows contintued for the overall group.

Harold Bruce "Bruce" Bond Innovator Capital Management LLC President, CEO

This article draws from Morningstar Direct data for October 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 158 firms (up month-over-month from 154 in September 2022 but down year-over-year from 168 in October 2021) with between $1 billion and $10 billion each in long-term fund AUM.

Small firms had $513 billion in total long-term fund AUM as of October 31, 2022, accounting for 2.27 percent of overall industry long-term fund AUM. That compares with $502 billion and 2.33 percent on September 30, 2022, and with $550 billion and 1.98 percent on October 31, 2021.

48 of those small fund firms brought in net inflows last month, up from 45 in September but down from 99 in October 2021.

Innovator kept the lead last month, thanks to an estimated $809 million in Net October 2022 inflows, up M/M from $463 million in September 2022 and up Y/Y from $92 million in October 2021. Other big October 2022 inflows winners included: Catalyst, $464 million (up M/M from $295 million, up Y/Y from $69 million); USCF, $195 million (up M/M from $99 million, up Y/Y from $60 million); LoCorr, $157 million (down M/M from $231 million, up Y/Y from $34 million); and BMO, $118 million (down M/M from $123 million, up Y/Y from $326 million in net outflows).

Innovator also took the lead proportionately last month, thanks to estimated net October 2022 inflows equivalent to 8.6 percent of its AUM. Other big inflows winners included: Catalyst, 6.4 percent; USCF, 5.2 percent; Aspiriant, 5 percent; and Cambria, 4.2 percent.

And Innovator still leads the 2022 small firm inflows pack so far, thanks to an estimated $4.329 billion in net year-to-date inflows as of October 31. Other big YTD inflows winners included: Catalyst, $2.008 billion; and LoCorr, $1.632 billion.

On the flip side, Angel Oak kept the small firm outflows lead for a third month in a row last month, thanks to an estimated $620 million in net October 2022 outflows, down M/M from $702 million in September 2022 and down Y/Y from $252 million in net inflows in October 2021. Other big October 2022 outflows sufferers included: JOHCM, $513 million (down M/M from $567 million, down Y/Y from $61 million in net inflows); Credit Suisse, $457 million (up M/M from $198 million, down Y/Y from $120 million in net inflows); FMI, $290 million (up M/M from $93 million, up Y/Y from $23 million); and Osterweis, $289 million (up M/M from $138 million, down Y/Y from $54 million in net inflows.

Angel Oak also took the small firm outflows lead proportionately last month, thanks to estimated net October 2022 outflows equivalent to 13.8 percent of its AUM. Other big outflows sufferers included: Barclays, 12.1 percent; Vulcan Value Partners, 8.9 percent; JOHCM, 7.1 percent; and Credit Suisse, 6.9 percent.

And Angel Oak still leads the small firm 2022 outflows pack so far, thanks to an estimated $3.623 billion in net YTD outflows as of October 31. Other big outflows sufferers included: AlphaCentric, $2.9 billion; and JOHCM, $2.675 billion.

As a group, small fund firms suffered $3.525 billion in net outflows last month, equivalent to 0.69 percent of their combined AUM and accounting for 16.09 percent of overall industry long-term outflows. That compares with $3.919 billion, 0.78 percent of AUM, and 5.1 percent of industry flows in September 2022, and with $5.043 billion in net inflows, 0.92 percent of AUM, and 6.01 percent of industry inflows.

Over the first ten months of 2022, small firms suffered an estimated $17.079 billion in net outflows. That's equivalent to 3.33 percent of their combined AUM and accounts for 7.39 percent of overall industry long-term ouflows.

Across the entire industry, the 787 firms tracked by the M* team (up M/M and Y/Y from 781) suffered an estimated $21.911 billion in net October 2022 outflows, equivalent to 0.1 percent of their combined $22.554 trillion in AUM. That's down M/M from $76.784 billion and 0.36 percent, and down Y/Y from $83.864 billion in net inflows and 0.3 percent of AUM.

Active funds suffered an estimated $101.864 billion in net October 2022 outflows, up M/M from $97.398 billion but down Y/Y from $5.324 billion in net inflows. Passive funds brought in $79.909 billion in net October 2022 inflows, up M/M from $20.732 billion and up Y/Y from $78.71 billion.

As of October 31, long-term funds and ETFs have suffered $231.047 billion in net 2022 outflows. That's equivalent to 1.02 percent of their combined AUM. 

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