Editor's Note: This month, MFWire is changing up how we categorize fund firms when looking at their fund flows. We're now dividing up firms by the number of funds they offer, instead of by AUM.
| Mary Callahan Erdoes|
CEO of Asset and Wealth Management
A money center bank's asset management arm is at the head of the pack so far this year when it comes to fund flows to the largest fund firms, according to the latest data from the folks at a publicly traded investment research firm.
This article draws from Morningstar Direct
data for September 2023 mutual fund and ETF flows, excluding money-market funds and funds of 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 at least 1,000 long-term mutual funds or ETFs each.
(including Six Circles) leads the way so far in 2023, thanks to an estimated $47.313 billion in net year-to-date inflows as of September 30, 2023. Other big YTD inflows winners included: Fidelity
, $32.948 billion; and BlackRock
(including iShares), $21.256 billion.
Fidelity led the way last quarter, thanks to an estimated $22.635 billion in net inflows in the third quarter of 2023. Other big Q3 2023 inflows winners included: BlackRock, $7.266 billion; and J.P. Morgan, $6.978 billion.
Fidelity also led the pack last month, thanks to an estimated $4.81 billion in net September 2023 inflows, down month-over-month from $8.097 billion in August 2023
but up year-over-year from $3.605 billion in September 2022
. Other big September 2023 inflows winners included: J.P. Morgan, $3.974 billion (up M/M from $2.355 billion, up Y/Y from $408 million in net outflows); and Invesco
, $1.969 billion (up M/M from $1.327 billion in net outflows, up Y/Y from $4.646 billion in net outflows).
On the flip side, Franklin Templeton
(including Royce) leads the 2023 outflows pack so far among mega firms, thanks to an estimated $18.367 billion in net YTD outflows as of September 30. Other big YTD outflows sufferers included: Ameriprise's Columbia Threadneedle
, $8.169 billion; and TIAA's Nuveen
, $6.967 billion.
Franklin also led the outflows pack last quarter, thanks to an estimated $7.124 billion in net Q3 2023 outflows. Other big outflows sufferers included: Nuveen, $3.353 billion; and Columbia Threadneedle, $2.816 billion.
BlackRock took the outflows lead last month, thanks to an estimated $3.148 billion in net September 2023 outflows, down M/M from $6.659 billion in August 2023 and down Y/Y from $4.824 billion in September 2022 inflows. Other big September 2023 outflows sufferers included: Franklin, $2.461 billion (down M/M from $3.116 billion, down Y/Y from $4.514 billion); and Nuveen, $1.63 billion (up M/M from $1.175 billion, down Y/Y from $2.423 billion).
As a group, the eight largest fund firms brought in $1.843 billion in net September 2023 inflows, ending the month with $7.203 trillion in AUM across 11,681 funds, with three of those firms netting inflows. Mega firms accounted for 29.8 percent of industry long-term fund AUM and 27.6 percent of industry long-term funds.
The largest fund firms brought in $27.291 billion in net inflows in Q3 2023. Four of the firms brought in net Q3 inflows.
Over the first nine months of 2023, jumbo fund firms brought in $67.38 billion in net inflows, accounting for 187.8 percent of industry inflows. Four of those firms have brought in net 2023 inflows so far.
Across the industry, the 780 firms tracked by the M* team (down M/M from 780 and down Y/Y from 781) suffered an estimated $12.246 billion in net September 2023 outflows, and ended the month with $24.155 trillion in AUM across 42,269 funds. That compares with $24.468 billion in net outflows across $25.211 trillion in AUM and 42,226 funds in August 2023, and with $76.784 billion in net outflows across $21.521 trillion in AUM in September 2022.
Active funds suffered $41.556 billion in net September 2023 outflows, up M/M from $34.337 billion in August 2023 but down Y/Y from $97.389 billion in September 2022. Passive funds brought in $29.31 billion in net September 2023 inflows, up M/M from $9.869 billion and up Y/Y from $20.732 billion.
In Q3 2023, long-term funds and ETFs suffered an estimated $3.838 billion in net outflows. And over the first nine months of 2023, they brought in $35.883 billion in net inflows.
***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) and separately managed accounts (SMAs) are commonly used alternatives to traditional mutual funds.
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