An alternatives-focused fund firm took the lead last month among small fund firms.

Gregory David "Greg" Bassuk AXS Investments LLC Chairman, CEO

This article draws from Morningstar Direct data for February 2023 open-end mutual 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 163 firms (up month-over-month from 160 in January 2023 but down year-over-year from 167 in February 2022) with between $1 billion and $10 billion in long-term fund AUM.

Small firms had $510 billion in total long-term fund AUm across 4,306 funds as of February 28, 2023, accounting for 2.17 percent of overall industry long-term fund AUM. That compaes with $508 billion, 4,311 funds, and 2.1 percent on January 31, 2023, and with $519 billion and 1.98 percent on February 28, 2022.

92 of those small fund firms brought in net inflows in February 2023. That's up M/M from 89 in January 2023 but down Y/Y from 93 in February 2022.

AXS took the lead last month, thanks to an estimated $354 million in net February 2023 inflows, up M/M from $189 million in January 2023 and up Y/Y from $2 million in net outflows in February 2022. Other big February 2023 inflows winners included: USCF, $281 million (up M/M from $269 million, up Y/Y from $61 million); Catalyst, $212 million (up M/M from $182 million, up Y/Y from $144 million); Fuller & Thaler, $138 million (down M/M from $398 million, down Y/Y from $150 million); and Amplify, $123 million (up M/M from $105 million, up Y/Y from $19 million).

AXS kept the lead proportionately last month, thanks to estimated net February 2023 inflows equivalent to 22.8 percent of its AUM. Other big inflows winners included: AllianzIM, 8.3 percent; and CRM, 7.4 percent.

After the first two months of 2023, USCF leads the 2023 inflows pack thanks to an estimated $550 million in net year-to-date inflows as of February 28. Other big YTD inflows winners included: AXS, $543 million; and Fuller & Thaler, $536 million.

On the flip side, KraneShares took the outflows lead last month, thanks to an estimated $625 million in net February 2023 outflows, down M/M from $351 million in net January 2023 inflows and down Y/Y from $218 million in net February 2022 inflows. Other big February 2023 outflows sufferers included: Champlain, $382 million (up M/M from $3 million, down Y/Y from $36 million in net inflows); Pear Tree, $118 million (down M/M from $190 million, down Y/Y from $113 million in net inflows); Hennessy, $110 million (up M/M from $45 million, up Y/Y from $9 million); and Barclays, $94 million (down M/M from $85 million in net inflows, down Y/Y from $2 million in net inflows).

KraneShares also took the outflows lead proportionately last month, thanks to estimated net February 2023 outflows equivalent to 6.7 percent of its AUM. Other big outflows sufferers included: Aperture, 6.5 percent; and Champlain, 4.8 percent.

After the first two months of 2023, Champlain leads the 2023 outflows pack thanks to an estimated $385 million in net YTD outflows as of February 28. Other big YTD outflows sufferers included: Pear Tree, $308 million; and Pacific Funds, $294 million.

As a group, small fund firms brought in an estimated $792 million in net February 2023 inflows, equivalen to 0.16 percent of their combined AUM. That compares with $1.656 billion and 0.33 percent in January 2023, and with $895 million and 0.17 percent in February 2022.

After the first two months of 2023, small firms had $3.005 billion in net YTD 2023 inflows. That's equivalent to 0.59 percent of their combined AUM and accounts for 7.27 percent of overall industry inflows.

Across the entire industry, the 782 firms tracked by the M* team (down M/M from 783 and down Y/Y from 795) suffered an estimated $3.245 billion in net February 2023 outflows, equivalent to 0.01 percent of their combined long-term fund AUM of $23.493 trillion. That compares with $42.682 billion in net inflows and 0.18 percent of industry AUM in January 2023, and with $47.85 billion in net inflows and 0.18 percent of AUM in February 2022.

Passive funds brought in $4.034 billion in net long-term fund inflows in February 2023, down M/M from $47.436 billion in January 2023 and down Y/Y from $80.08 billion in February 2022 outflows.

The entire long-term fund industry brought in $41.317 billion in net inflows in the first two months of 2023. That's equivalent to 0.18 percent of the industry's combined long-term fund AUM. 

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