An ETF shop increased its small fund firm inflows winning streak to six months last month, even as outflows returned for the overall group.

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

This article draws from Morningstar Direct data for September 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 154 firms (down from 166 in August 2022 and from 168 in September 2021) with between $1 billion and $10 billion each in long-term fund AUM.

Small firms had $502 billion in total long-term fund AUM as of September 30, 2022, accounting for 2.33 percent of overall industry long-term fund AUM. That compares with $521 billion and 2.22 percent on August 31, 2022, and with $548 billion and 2.42 percent on September 31, 2021.

45 of those small fund firms brought in net inflows last month, down from 78 in August 2022 and 99 in September 2021.

Innovator kept the lead last month, thanks to an estimated $463 million in net September 2022 inflows, up month-over-month from $445 million in August 2022 and $102 million in September 2021. Other big September 2022 inflows winners included: Catalyst, $295 million (up M/M from $174 million, up Y/Y from $65 million); LoCorr, $231 million (up M/M from $66 million, up Y/Y from $89 million); AssetMarks' GuideMark and GuidePath, $186 million (up M/M from $39 million, up Y/Y from $6 million); and Abbey Capital, $169 million (up M/M from $146 million, up Y/Y from $42 million).

AssetMark took the lead proportionately last month, thanks to estimated net September inflows equivalent to 12.9 percent of its AUM. Other big inflows winners included: Salient, 6.2 percent; PFM, 5.8 percent; Innovator, 5.6 percent; and Abbey, 5.1 percent.

Innovator also led the small firm inflows pack last quarter, thanks to an estimated $1.248 billion in net inflows in the third quarter of 2022. Other big Q3 2022 inflows winners included: Catalyst, $659 million; and Abbey, $462 million.

And Innovator leads the 2022 small firm inflows pack so far, thanks to an estimated $3.43 billion in net year-to-date inflows as of September 30. Other big YTD inflows winners included: Catalyst, $1.544 billion; and LoCorr, $1.475 billion.

On the flip side, Angel Oak kept the small firm outflows lead for a second month in a row last month, thanks to an estimated $702 million in net September 2022 outflows, up M/M from $277 million in August 2022 and up Y/Y from $333 million in September 2021. Other big September 2022 outflows sufferers included: KraneShares, $592 million (down M/M from $677 million, down Y/Y from $945 million in net inflows); JOHCM, $567 million (up M/M from $162 million, down Y/Y from $92 million in net inflows); U.S. Global Investors, $290 million (up M/M from $15 million, down Y/Y from $221 million in net inflows); and City National Rochdale, $270 million (down M/M from $63 million in net inflows, down Y/Y from $19 million in net inflows).

AXS took the small firm outflows lead proportionately last month, thanks to estimated net September 2022 outflows equivalent to 17.1 percent of its AUM. Other big outflows sufferers included: Angel Oak, 13.5 percent; U.S. Global Investors, 12.7 percent; Aspiriant, 8.2 percent; and Palmer Square, 7.7 percent.

KraneShares led the small firm outflows pack in Q3 2022, thanks to an estimated $1.658 billion in net outflows. Other big outflows sufferers included: Angel Oak, $1.153 billion; and JOHCM, $1.01 billion.

Angel Oak now leads the small firm 2022 outflows pack so far, thanks to an estimated $3.003 billion in net YTD outflows as of September 30. Other big outflows sufferers included: AlphaCentric, $2.858 billion; and JOHCM, $2.161 billion.

As a group, small fund firms suffered $3.919 billion in net outflows last month, equivalent to 0.78 percent of their combined AUM and accounting for 5.1 percent of overall industry long-term outflows. That compares with $558 million in net inflows, 0.11 percent of AUM, and 11.59 percent of industry inflows in August 2022, and with $1.636 billion in net inflows, 0.3 percent of AUM, and 2.87 percent of industry inflows in September 2021.

Small fund firms suffered an estimated $6.73 billion in net Q3 2022 outflows. That's equivalent to 1.34 percent of their combined AUM and accounts for 7.89 percent of overall industry long-term outflows.

In the first nine months of 2022, small firms suffered an estimated $9.269 billion in net outflows. That's equivalent to 1.85 percent of their combined AUM and accounts for 4.69 percent of overall industry long-term outflows.

Across the entire industry, the 781 firms tracked by the M* team (down M/M from 784 but up Y/Y from 777) suffered an estimated $76.784 billion in net September 2022 outflows, equivalent to 0.36 percent of their combined $21.521 trillion in AUM. That's down M/M from $4.816 billion in net inflows and 0.02 percent AUM, and down Y/Y from $57.068 billion in net inflows and 0.22 percent of AUM.

Active funds suffered an estimated $97.389 billion in net September 2022 outflows, up M/M from $33.062 billion but down Y/Y from $9.916 billion in net inflows. Passive funds brought in $20.732 billion in net September 2022 inflows, down M/M from $37.485 billion and down Y/Y from $47.828 billion.

In Q3 2022, long-term funds and ETFs suffered an estimated $85.333 billion in net outflows. That's equivalent to 0.4 percent of their combined AUM.

And as of September 30, long-term funds and ETFs have suffered $197.566 billion in net 2022 outflows. That's equivalent to 0.92 percent of their combined AUM. 

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