Passive inflows climbed 25 percent last month, even as active inflows fell 20 percent. And the largest fund firms' market share by AUM continued to inch higher.

Mortimer J. "Tim" Buckley Vanguard President, CEO

This article draws from Morningstar Direct data for March 2021 mutual fund and ETF flows, excluding money market funds and funds of funds. (Other asset management products, like collective trusts and SMAs, are also not included.***) More specifically, this article focuses on the 32 firms (up from 25 in March 2020) with more than $100 billion each in long-term fund AUM.

Large fund firms account for 85.91 percent of long-term fund AUM as of March 31, 2021, up from 85.91 percent on February 28, 2021, and up from 82.03 percent on March 31, 2020. 22 large fund firms brought in net long-term fund inflows in March 2021, up from 21 in February 2021 and up from six in March 2020.

Vanguard kept the lead last month, bringing in an estimated $42.151 billion in net March 2021 inflows, up from $37.45 billion in February 2021 and up from $36.956 billion in net outflows in March 2020. Other big March 2021 inflows winners included: BlackRock, $25.574 billion (up month-over-month from $21.02 billion, up year-over-year from 422.983 billion in net outflows); Fidelity, $20.498 billion (up MOM from $19.756 billion, up YOY from $39.346 billion in net outflows); SSGA, $17.892 billion (up MOM from $4.774 billion and down YOY from $23.142 billion); and J.P. Morgan (including Six Circles), $7.138 billion (up MOM from $7.102 billion and up YOY from $14.577 billion in net outflows).

Proportionately among the biggest fund firms, Edward Jones' Bridge Builder took the lead last month, thanks to estimated March 2021 inflows equivalent to 4.1 percent of its AUM. Other big inflows winners included: SSGA, 1.9 percent; First Trust, 1.9 percent; J.P. Morgan, 1.4 percent; and Charles Schwab, 1.3 percent.

Vanguard also led the large fund firm inflows pack in Q1 2021, thanks to an estimated $118.665 billion in net inflows. Other big Q1 inflows winners included: BlackRock, $55.9 billion; Fidelity, $48.359 billion; J.P. Morgan, $25.029 billion; and SSGA, $17.709 billion.

On the flip side, last month was a rough one for DFA, which led the large fund firm outflows pack thanks to an estimated $3.125 billion in net March 2021 outflows, up from $2.763 billion in February 2021 but down from $7.86 billion in March 2020. Other big March 2021 outflows sufferers included: T. Rowe Price, $2.392 billion (down MOM from $1.789 billion in net inflows, down YOY from 412.517 billion); Franklin Templeton, $1.067 billion (down MOM from $3.903 billion, down YOY from $8.143 billion); Janus Henderson, $756 million (up MOM from $374 million, down YOY from $2.992 billion); and PGIM, $726 million (down MOM from $1.119 billion in net inflows, down YOY from $994 million).

Proportionately among the biggest fund firms, DFA also suffered the most last month, thanks to estimated net March 2021 outflows equivalent to 0.7 percent of its AUM. Other big outflows sufferers included: SEI, 0.5 percent; PGIM, 0.4 percent; Janus Henderson, 0.4 percent; and T. Rowe, 0.3 percent.

DFA also led the outflows pack in Q1, thanks to an estimated $8.2 billion in net outflows. Other big Q1 2021 outflows sufferers included: Franklin Templeton, $5.085 billion; T. Rowe Price, $4.968 billion; Jackson, $1.832 billion; and Principal, $1.697 billion.

As a group, the 32 largest fund firms brought in an estimated $137.458 billion in net inflows in March 2021, equivalent to 0.64 percent of their combined AUM and accounting for 87.83 percent of overall industry inflows. That's up from $119.678 billion, 0.54 percent of AUM, and 78 percent of industry inflows in February 2021. And that's up from $218.319 billion in net outflows, 1.56 percent of AUM in outflows, and 66.89 percent of industry outflows in March 2020.

In Q1 2021, the largest fund firms brought in an estimated $326.592 billion in net inflows, equivalent to 1.53 percent of AUM and accounting for 81.51 percent of overall industry inflows.

Across the entire industry, the 758 fund firms (up from 753 in February 2021 but down from 770 in March 2020) tracked by the M* team brought in a combined $156.503 billion in estimated net long-term fund inflows in March 2021, equivalent to 0.63 percent of long-term fund AUM. That's up from $144.457 billion and 0.6 percent of AUM in February 2021, and it's up from $326.378 billion in net outflows and 1.91 percent of AUM in March 2020.

Active funds brought in an estimated $42.386 billion in net March 2021 inflows, down from $53.109 billion in February 2021 and up from $309.808 billion in net outflows in March 2020. Passive funds brought in an estimated $114.117 billion in net March 2021 inflows, up from $91.347 billion in February 2021 and up from $16.57 billion in March 2020 outflows.

In Q1 2021, long-term funds brought in an estimated $400.697 billion in net inflows, equivalent to 1.61 percent of their combined AUM.

*** This caveat is particularly important for these large fund firms, many of which are big in the defined contribution retirement plan business, where CITs are a commonly used alternative to traditional mutual funds. For example, as the T. Rowe team revealed last week, in March 2021 their clients transferred about $1.7 billion out of T. Rowe mutual funds and into other T. Rowe products, like CITs and SMAs. And T. Rowe is a big retirement plan provider and DC I-O asset manager. 

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