An anti-ESG ETF startup led the inflows pack last month among the smallest fund firms.

Vivek Ganapathy Ramaswamy Strive Asset Management, LLC Co-Founder, Executive Chairman

This article draws from Morningstar Direct data on August 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 515 firms (up from 514 in July 2022 and up from 496 in August 2021).

Micro fund firms had $96 billion in total long-term fund AUM as of August 31, 2022, accounting for 0.41 percent of overall industry long-term fund AUM. That compares with $94 billion and 0.39 percent on July 31, 2022, and with $97 billion and 0.36 percent on August 31, 2021.

233 of those micro fund firms brought in net inflows last month, up from 227 in July 2022 but down from 258 in August 2021.

Strive Asset Management took the lead last month, thanks to an estimated $313 million in net August 2022 inflows. Other big inflows winners included: Muzinich, $124 million (up month-over-month from $2 million in July 2022 outflows, up year-over-year from $13 million in August 2021 outflows); Kensington Asset Management, $118 million (up M/M from $66 million); Teucrium, $116 million (up M/M from $142 million in net outflows, up Y/Y from $16 million in net outflows); and RBB Funds, $78 million.

August 2022 featured at least three apparent mutual fund industry newcomers: Aztlan ETFs, Neos, and Strive.

So far in 2022, Teucrium leads the micro fund firm inflows pack, thanks to an estimated $565 million in net year-to-date inflows as of August 31. Other big YTD inflows winners included: Kensington, $501 million; and Invenomic, $462 million.

On the flip side, AAAMCO took the micro firm outflows lead last month, thanks to an estimated $218 million in net August 2022 outflows, up M/M from $1 million in July 2022 but down Y/Y from $14 million in net August 2021 outflows. Other big August 2022 outflows sufferers included: Rockfeller, $155 million (up M/M from $18 million, down Y/Y from $2 million in net inflows); Leuthold, $75 million (down M/M from $90 million in net inflows, up Y/Y from negligible net outflows); Cromwell, $54 million (up from $54 million in net inflows); and ARGA, $43 million (down M/M from $104 million in net inflows.

Semper still leads the 2022 micro firm outflows pack so far, thanks to an estimated $737 million in net YTD outflows as of Augsut 31. Other big outflows sufferers incldued: Cromwell, $468 million; and Liberty Street, $436 million.

As a group, micro fund firms brought in an estimated $700 million in net August 2022 inflows, equivalent to 0.73 percent of their combined AUM and accounting for 14.53 percent of net industry inflows. That compares with $1 million in net outflows, 0.001 percent of AUM, and 0.01 percent of industry outflows in July 2022, and with $1.26 billion in net inflows, 1.3 percent of AUM, and 1.29 percent of industry inflows.

In 2022, micro fund firms have brought in $4.182 billion in net YTD inflows, as of August 31. That's equivalent to 4.36 percent of their combined AUM.

Across the entire industry, the 784 firms tracked by the M* team (up Y/Y from $776) brought in an estimated $4.816 billion in net August 2022 inflows, equivalent to 0.02 percent of their combined $23.433 trillion in AUM. That's up M/M from $12.991 billion in net outflows and 0.05 percent of AUM, but down Y/Y from $97.458 billion in net inflows and 0.35 percent of AUM.

Active funds suffered an estimated $33.062 billion in net August 2022 outflows, down M/M from $58.766 billion and down Y/Y from $19.829 billion in net inflows. Yet passive funds brought in $37.845 billion in net August 2022 inflows, down M/M from $45.732 billion and down Y/Y from $77.739 billion.

As of August 31, long-term funds and ETFs have suffered $121.156 billion in net 2022 outflows. That's equivalent to 0.52 percent of their combined AUM. 

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