A commodities-focused fund firm took the lead last quarter among small fund firms.

John Parish Love USCF President, CEO

This article draws from Morningstar Direct data for March 2023 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 160 firms (down month-over-month from 163 in February 2023 and down year-over-year from 172 in March 2022) with between $1 billion and $10 billion each in long-term fund AUM.

Small firms had $498 billion in total long-term fund AUM across 4,018 funds as of March 31, 2023, accouning for 2.08 percent of overall industry long-term fund AUM. That compares with $510 billion, 4,306 funds, and 2.17 percent of industry AUM on February 28, 2023, and with $541 billion and 2.04 percent of industry AUM on March 31, 2022.

57 of those small fund firms brought in net inflows in March 2023. That's down M/M from 92 in February 2023 and down Y/Y from 73 in March 2022.

USCF led the way last quarter, thanks to an estimated $852 million in net inflows in the first quarter of 2023. Other big Q1 2023 inflows winners included: Fuller & Thaler, $664 million; North Slope, $603 million; Catalyst, $454 million; and Alpha Architect, $321 million.

North Slope led the pack proportionately last quarter, thanks estimated net Q1 2023 inflows equivalent to 59 percent of its AUM. Other big inflows winners included: Alpha Architect, 23.4 percent; and USCF, 22.8 percent.

Last month, North Slope also took the lead, thanks to an estimated $374 million in net March 2023 inflows, up M/M from $156 million in February 2023. Other big March 2023 inflows winners included: USCF, $303 million (up M/M from $281 million, up Y/Y from $143 million in net outflows in March 2022); and Alpha Architect, $192 million (up M/M from $16 million, up Y/Y from $74 million).

On the flip side, Credit Suisse led the outflows pack last quarter, thanks to an estimated $1.007 billion in net Q1 2023 outflows. Other big outflows sufferers included: KraneShares, $665 million; Champlain, $431 million; JOHCM, $404 million; and Pear Tree, $364 million.

Credit Suisse also led the outflows pack proportionately last quarter, thanks to estimated net Q1 2023 outflows equivalent to 17.5 percent of its AUM. Other big outflows sufferers included: U.S. Global Investors, 15.6 percent; and Highland, 12.4 percent.

And Credit Suisse also took the outflows lead last month, thanks to an estimated $1.186 billion in net March 2023 outflows, up M/M from $105 million in February 2023 and up Y/Y from $376 million in March 2022. Other big March 2023 outflows sufferers included: KraneShares, $391 million (down M/M from $625 million, up Y/Y from $328 million); and AXS, $272 million (down M/M from $354 million in net inflows, up Y/Y from $1 million in net outflows).

As a group, small fund firms brought in an estimated $306 million in net Q1 2023 inflows. That's equivalent to 0.06 percent of their combined AUM.

Yet in March 2023 alone, small fund firms suffered $3.253 billion in net outflows, equivalen to 0.65 percent of their combined AUM and accounting for 12.74 percent of overall industry outflows. That's down M/M from $792 million in net inflows and 0.16 percent of AUM in February 2023, and down Y/Y from $3.391 billion in net outflows and 0.63 percent of AUM in March 2022.

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 

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