An exchange traded product (ETP) shop beat out small fund firms and ETF shops last month.

This article draws from Morningstar Direct data on October 2019 ETF and open-end mutual fund flows, excluding money-market funds and funds of funds. More specifically, this article focuses on the 154 firms (one fewer than in September) with between $1 billion and $10 billion each in fund AUM. 68 of those firms gained net inflows last month.

Digital Currency Group's Grayscale Investments (an ETP shop specializing in investments in digital currency, like bitcoin) led the small fund firm pack thanks to an estimated $211 million in net October inflows, up from $24 million in September. Other big October inflows winners included: PT Asset Management, $153 million (up from $99 million); City National Rochdale, $141 million (up from $73 million); Semper, $128 million (up from $61 million); and AlphaCentric, $125 million (down from $147 million).

Grayscale also led the small fund firm pack proportionately, bringing in estimated net October inflows equivalent to 8.31 percent of its AUM, up from 1.2 percent in September. Other big October inflows winners included: Semper, 4.75 percent (up from 2.36 percent); PTAM, 4.47 percent (up from 3.03 percent); AAM, 4.13 percent (down from 4.15 percent); and GQG, 3.55 percent (down from 3.54 percent).

On the flip side, October was a rough month for Independent Franchise Partners, which suffered an estimated $635 million in net outflows, more than any other small fund firm and down from $26 million in net September inflows. Other big October outflows sufferers included: Innovator, $489 million (down from $81 million in net inflows); Sterling Capital Funds, $437 million (down from $8 million in net inflows); IVA, $363 million (up from $186 million); and Robeco's Boston Partners, $349 million (up from $217 million).

Independent Franchise Partners also led the small fund firm outflows pack proportionately, with estimated net October outflows equivalent to 41.49 percent of its AUM, down from 1.22 percent in net September inflows. Other big October outflows sufferers included: Innovator, 18.71 percent (down from 4.28 percent in net inflows); PNC (whose mutual fund business has since been sold, as expected), 6.55 percent (up from 3.02 percent); Sterling, 6.35 percent (down from 0.1 percent in net inflows); and USCF, 5.15 percent (up from 1.35 percent).

As a group, the 154 small fund firms suffered an estimated $2.604 billion in combined net October outflows, equivalent to about 0.54 percent of their combined AUM. That's up from $1.27 billion and 0.25 percent of AUM in September.

Across the whole industry (M* tracks flows from 765 firms, down from 767 in September), long-term mutual funds and ETFs brought in $28.974 billion in net inflows in October, equivalent to 0.15 percent of industry AUM. That's down from $39.916 billion in net September inflows. Passive funds brought in $38.42 billion in net October inflows (down from $52.576 billion), while active funds suffered $9.446 billion in net outflows (down from $12.66 billion). 

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