A giant institutional bank's asset management arm took the lead last month among midsize fund firms.

Hanneke Smits BNY Mellon Investment Management CEO

This article draws from Morningstar Direct data on February 2023 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 71 firms (down month-over-month from 72 in January 2023 and down year-over-year from 74 in February 2022) with between $10 billion and $100 billion each in long-term fund AUM.

Midsize firms had $2.437 trillion in combined long-term fund AUM across 13,241 funds as of February 28, 2023, and they accounted for 10.37 percent of industry AUM. That compares with $2.465 trillion, 12,615 funds, and 10.2 percent of industry AUM on January 31, 2023, and with $2.55 trillion and 9.37 percent of industry AUM as of February 28, 2022.
29 midsize firms brought in net February 2023 inflows, down M/M from 34 and down Y/Y from 35.

BNY Mellon took the lead last month, thanks to an estimated $2.251 billion in February 2023 inflows, up M/M from $261 million in January 2023 outflows and up Y/Y from $767 million in February 2022 outflows. Other big February 2023 inflows winners included: Baird (including Strategas), $1.227 billion (up M/M from $702 million, up Y/Y from $313 million in net outflows); Pacer, $1.161 billion (down M/M from $1.454 billion, up Y/Y from $1.015 billion); Voya, $1.055 billion (up M/M from $278 million, up Y/Y from $748 million in net outflows); and Guggeheim (including Rydex), $726 million (up M/M from $554 million, up Y/Y from $1.087 billion in net outflows.

Pacer led the way again proportionately last month, thanks to net February 2023 inflows equivalent to 5.2 percent of its AUM. Other big inflows winners included: BNY Mellon, 3.7 percent; and Innovator, 3.2 percent.

After the first two months of 2023, Pacer also leads the 2023 inflows pack, thanks to an esteiamted $2.616 billion in net year-to-date inflows as of February 28. Other big inflows winners included: ProShares, and ProFunds, $2.23B; and BNY Mellon, $1.99 billion.

On the flip side, Putnam took the outflows lead last month, thanks to an estimated $846 million in net February 2023 outflows, up M/M from $241 million in January 2023 and up Y/Y from $154 million in February 2022. Other big February 2023 outflows sufferers included: Macquarie (home of Delaware Funds), $633 million (down M/M from $985 million, down Y/Y from $964 million); Virtus, $539 million (up M/M from $463 million, down Y/Y from $683 million); Calamos, $458 million (up M/M from $442 million, down Y/Y from $470 million in net inflows); and VanEck, $389 million (down M/M from $253 million in net inflows, down Y/Y from $1.976 billion in net inflows).

Alger led the pack proportionately again last month, thanks to net February inflows equivalent to 2.5 percent of its AUM. Other big outflows sufferers included: Calamos, 2 percent; and ABRDN, 1.7 percent.

After the first two months of 2023, Macquarie leads the 2023 midsize outflows pack thanks to an estimated $1.619 billion in net YTD inflows as of February 28. Other big inflows sufferers included: Putnam, $1.046 billion; and Virtus, $1.002 billion.

As a group, midsize fund firms brought in $3.161 billion in net February 2023 inflows, equivalent to 0.13 percent of their combined AUM. That compares with $4.092 billion and 0.17 percent of AUM in January 2023, and with $826 million and 0.03 percent of AUM in February 2022.

Midsize fund firms have brought in $8.316 billion in net YTD inflows as of February 28, 2023. That translates into 0.34 percent of their combined AUM and accounts for 20.13 percent of overall industry inflows.

Across the entire industry, the 782 firms tracked by the M* team (down M/M from 783 and down Y/Y from 795) suffered an estimated $3.245 billion in net February 2023 outflows, equivalent to 0.01 percent of their combined long-term fund AUM of $23.493 trillion. That compares with $42.682 billion in net inflows and 0.18 percent of industry AUM in January 2023, and with $47.85 billion in net inflows and 0.18 percent of AUM in February 2022.

Passive funds brought in $4.034 billion in net long-term fund inflows in February 2023, down M/M from $47.436 billion in January 2023 and down Y/Y from $80.08 billion in February 2022 outflows.

The entire long-term fund industry brought in $41.317 billion in net inflows in the first two months of 2023. That's equivalent to 0.18 percent of the industry's combined long-term fund AUM. 

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