A publicly traded brokerage's asset management arm widened its lead last month among large fund firms, even as the group's overall flows swung negative.

Omar Aguilar Schwab Asset Management CEO, Chief Investment Officer

This article draws from Morningstar Direct data on March 2023 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 23 firms (up month-over-month from 22 in February 2023 but down year-over-year from 25 in March 2022) with between $100 billion and $500 billion each in long-term fund AUM.

Large fund firms had a combined $4.658 trillion in total long-term fund AUM across 14,915 funds as of March 31, 2023, and they accounted for 19.43 percent of overall industry long-term fund AUM. That compares with $4.511 trillion, 14,236 funds, and 19.2 percent of industry AUM on February 28, 2023, and with $5.025 trillion and 18.99 percent of industry AUM on March 31, 2022.

Five large fund firms brought in net inflows last month. That's down M/M from 13 in February 2023 and down Y/Y from six in March 2022.

Schwab led the inflows pack last quarter, thanks to an estimated $10.527 billion in net inflows for the first quarter of 2023. Other big Q1 2023 inflows winners included: DFA, $4.084 billion; Edward Jones' Bridge Builder, $3.324 billion; American Century (including Avantis), $2.004 billion; and Dodge & Cox, $1.676 billion.

Schwab also lead the pack last month (its fifth monthly win in a row), thanks to an estimated $3.391 billion in March 2023 inflows, up M/M from $1.932 billion in February 2023 and up Y/Y from $2.857 billion in March 2022. Other big March 2023 inflows winners included: Bridge Buiilder, $2.35 billion (up M/M from $466 million, down Y/Y from $3.624 billion); and DFA, $783 million (down M/M from $1.199 billion, up Y/Y from negligible net outflows).

On the flip side, Franklin Templeton (including Royce) led the outflows pack last quarter, thanks to an estimated $4.89 billion in net Q1 2023 outflows. Other big outflows sufferers included: Lord Abbett, $2.819 billion; Jackson, $2.637 billion; Ameriprise's Columbia Threadneedle, $2.305 billion; and Morgan Stanley (including Eaton Vance and Calvert), $1.743 billion.

Franklin also led the outflows pack last month, for the second month in a row, thanks to an estimated $2.936 billion in net March 2023 outflows, up M/M from $1.202 billion in February 2023 but down Y/Y from $3.416 billion in March 2022. Other big March 2023 outflows sufferers included: TIAA's Nuveen, $2.474 billion (up M/M from $410 million, up Y/Y from $1.135 billion); and Morgan Stanley, $2.246 billion (down M/M from $84 million in net inflows, down Y/Y from $3.113 billion in net outflows.

As a group, large fund firms brought in $3.65 billion in net Q1 2023 inflows. That's equivalent to 0.08 percent of their combined AUM and accounting for 24.06 percent of overall industry long-term inflows.

In March 2023, large fund firms suffered $10.801 billion in net outflows, equivalent to 0.23 percent of their combined AUM and accounting for 42.31 percent of overall industry outflows. That compares with $3.635 billion in net inflows and 0.08 percent of inflows in February 2023, and with $17.629 billion in net outows and 0.35 percent of outflows.

Across the entire industry, the 785 firms tracked by the M* team (up M/M from 782 but down Y/Y from 791) brought in an estimated $15.168 billion in net inflows in Q1 2023. That's equivalent to 0.06 percent of their combined $23.968 trillion in AUM (which is spread across 42,221 funds).

In March 2023, the industry overall suffered an estimated $25.527 billion in long-term fund outflows, equivalent to 0.11 percent of the industry's long-term AUM. That compares with $3.245 billion and 0.01 percent of AUM in February 2023, and with $30.653 billion in net inflows and 0.12 percent of AUM in March 2022.

Active funds suffered an estimated $58.306 billion in net outflows in March 2023, up M/M from $7.279 billion but down Y/Y from $70.411 billion. On the flip side, passive funds brought in $32.778 billion in March 2023 inflows, up M/M from $4.034 billion but down Y/Y from $101.064 billion. 

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