Small fund firms' overall flows worsened by $3.877 billion last month, even as an ETF shop kept its inflows lead for a fourth month in a row.

Harold Bruce "Bruce" Bond Innovator Capital Management LLC President, CEO

This article draws from Morningstar Direct data for July 2022 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 166 firms (up from 161 in June 2022 but level with July 2021) with between $1 billion and $10 billion each in long-term fund AUM.

Small firms had $517 billion in total long-term fund AUM as of July 31, 2022, accounting for 2.14 percent of overall industry long-term fund AUM. That compares with $511 billion and 2.24 percent on June 30, 2022, and with $537 billion and 2 percent on July 31, 2021.

63 of those small fund firms brought in net inflows last month, up from 42 in June 2022 but down from 101 in July 2021.

Innovator kept the lead last month, thanks to an estimated $341 million in net July 2022 inflows, down month-over-month from $392 million in June 2022 but up year-over-year from $219 million in July 2021. Other big July 2022 inflows winners included: Catalyst, $191 million (up M/M from $171 million, up Y/Y from $62 million); Abbey Capital, $148 million (up M/M from $145 million, up Y/Y from $19 million); Aspiriant, $146 million (up M/M from $34 million in net outflows, up Y/Y from $23 million); and LoCorr, $126 million (down M/M from $193 million, up Y/Y from $69 million).

Advisors Preferred took the lead proportionately last month, thanks to estimated net July inflows equivalent to 7.5 percent of its AUM. Other big inflows winners included: Aspiriant, 5.7 percent; Abbey, 5.3 percent; Absolute Investment Advisers, 4.8 percent; and Innovator, 4.3 percent.

Advanced Series Trust now leads the 2022 small firm inflows pack so far, thanks to an estimated $5.854 billion in net year-to-date inflows as of July 31. Other big YTD inflows winners included: Innovator, $2.522 billion; and LoCorr, $1.178 billion.

On the flip side, USCF took the small firm outflows lead last month, thanks to an estimated $544 million in net July 2022 outflows, down M/M from $75 million in net inflows in June 2022 but up Y/Y from $371 million in net outflows in July 2021. Other big July 2022 outflows sufferers included: Callahan's Trust for Credit Unions, $510 million (up M/M from $239 million, down Y/Y from $13 million in net inflows); JOHCM, $282 million (up M/M from $228 million, down Y/Y from $177 million in net inflows); Angel Oak, $173 million (down M/M from $443 million, up Y/Y from $119 milion); and Frontier, $124 million (up M/M from $32 million, up Y/Y from $37 million).

Trust for Credit Unions led the outflows pack proportionately last month, thanks to estimated net July 2022 outflows equivalent to 47.6 percent of its AUM. Other big outflows sufferers included: USCF, 13.6 percent; Frontier, 7.8 percent; Dupree, 7.2 percent; and Graniteshares, 6.6 percent.

Trust for Credit Unions also leads the small firm outflows pack so far in 2022, thanks to an estimated $3.029 billion in net YTD outflows as of July 31. Other big outflows sufferers included: AlphaCentric, $2.755 billion; and Angel Oak, $2.023 billion.

As a group, small fund firms suffered an estimated $2.41 billion in net outflows last month, equivalent to 0.47 percent of their combined AUM and accounting for 18.55 percent of overall industry long-term outflows. That compares with $1.467 billion in net inflows and 0.29 percent of AUM in June 2022, and with $2.654 billion in net inflows, 0.49 percent of AUM, and 3.44 percent of industry inflows in July 2021.

Small fund firms have collectively suffered an estimated $9.9 billion in net 2022 outflows so far, as of July 31. That's equivalent to 1.92 percent of their combined AUM and accounts for 8.05 percent of overall industry long-term outflows YTD.

Across the entire industry, the 784 firms tracked by the M* team (down M/M from 791 but up Y/Y from 774) suffered an estimated $12.991 billion in net July 2022 outflows, equivalent to 0.05 percent of their combined $24.166 trillion in AUM. That's down M/M from $61.306 billion and 0.27 percent of AUM and down Y/Y from $77.077 billion in net inflows and 0.27 percent of AUM.

Active funds suffered an estimated $58.766 billion in net July 2022 outflows, down M/M from $90.45 billion and down Y/Y from $14.693 billion in net inflows. Yet passive funds brought in $45.732 billion in net July 2022 inflows, up M/M from $29.219 billion but down Y/Y from $57.431 billion.

So far in 2022, as of July 31, long-term funds and ETFs have suffered $123.051 billion in net outflows. That's equivalent to 0.51 percent of their combined AUM. 

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