MutualFundWire.com: A $6.2B-AUM Shop Wins As Small Firms' Marketshare Dips

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Wednesday, July 21, 2021

A $6.2B-AUM Shop Wins As Small Firms' Marketshare Dips

A 13-year-old, $6.2-billion AUM (as of March 31) fixed income boutique led the small fund firm pack last month, even as small firms' marketshare slipped.

Sean Michael-Thomas Dranfield
PT Asset Management, LLc
Managing Director

This article draws from Morningstar Direct data on June 2021 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 168 firms (up from 154 in June 2020) with between $1 billion and $10 billion each in long-term fund AUM.

Small firms had $545 billion in total long-term fund AUM as of June 30, 2021, accounting for 2.05 percent of industry AUM in long-term funds. That compares with $544 billion and 2.46 percent on May 31, 2021 and $505 billion and 2.54 percent on June 30, 2020.

98 small fund firms brought in net inflows last month, down from 101 in May 2021 but up from 66 in June 2020.

PT Asset Management took the lead last month, thanks to an estimated $341 million in net June 2021 inflows, up month-over-month from $117 million in May 2021 inflows and up year-over-year from $199 million in June 2020 inflows. Other big June 2021 inflows winners included: ETFMG, $230 million (up M/M from $63 million, up Y/Y from $78 million); Angel Oak, $199 million (up M/M from $63 million, up Y/Y from $126 million); Clark Capital Management's Navigator Funds, $186 million (up M/M from $171 million, up Y/Y from $108 million); and Fuller & Thaler, $184 million (up M/M from $66 million, up Y/Y from $151 million).

Exchange Traded Concepts took the lead proportionately last month, bringing in estimated net inflows equivalent to 8.2 percent of its long-term mutual fund AUM. Other big June 2021 inflows winners included: 1290 Funds, 6.6 percent; Aptus Capital Advisors, 6.5 percent; Advisors Preferred, 6.5 percent; and Shenkman Funds, 6.1 percent.

Pacer led the small fund firm pack last quarter, thanks to an estimated $807 million in second quarter net inflows. Other big Q2 2021 inflows winners included: PT, $570 million; and Navigator, $516 million.

In the first six months of 2021, Trust for Credit Unions led the small fund firm pack thanks to an estimated $1.714 billion in net inflows. Other big YTD inflows winners included: ETFMG, $1.4 billion; and PT, $1.249 billion.

For the 12 months ending on June 30, 2021, Trust for Credit Unions led the small fund firm pack thanks to an estimated $2.993 billion in net inflows. Other big inflows winners included: ETFMG, $2.369 billion; and PT, $2.313 billion.

On the flip side, last month was a rough one for USCF, which suffered an estimated $379 million in net June 2021 outflows, more than any other small fund firm and up M/M from $12 million in May 2021 (but down Y/Y from $589 million in June 2020). Other big June 2021 outflows sufferers included: Trust for Credit Unions, $329 million (down M/M from $95 million in net inflows, down Y/Y from $252 million in net inflows); AIG (whose funds are being acquired), $262 million (up M/M from $196 million, up Y/Y from $235 million); Meridian, $133 million (up M/M from $17 million, down Y/Y from $158 million); and Sands Capital, $118 million (down M/M from $26 million in net inflows, down Y/Y from $54 million in net inflows).

USCF also led the small fund firm outflows pack proportionately last month, thanks to estimated net June 2021 outflows equivalent to 8.2 percent of its AUM. Other big June outflows sufferers included: CRM, 7.3 percent; Trust for Credit Unions, 6.8 percent; Sands, 4.8 percent; and AIG, 3.7 percent.

Causeway led the Q2 small fund firm outflows pack, thanks to an estimated $678 million in net outflows. Other big Q2 outflows sufferers included: AIG, $626 million; and USCF, $530 million.

As of June 30, USCF led the YTD small fund firm outflows, thanks to an estimated $2.035 billion in net outflows. Other big YTD outflows sufferers included: Fiera Capital, $1.651 billion; and AIG, $1.248 billion.

For the 12 months ending on June 30, 2021, USCF suffered an estimated $3.981 billion in net outflows, more than any other small fund firm. Other big outflows sufferrs included AIG, $2.605 billion; and Glenmede, $2.357 billion.

As a group, small fund firms brought in an estimated $2.866 billion in net June 2021 inflows, equivalent to about 0.53 percent of their combined AUM and accounting for 2.72 percent overall industry long-term inflows. That compares with $2.652 billion, 0.49 percent of AUM, and 3.2 percent of industry inflows in May 2021, and $810 million in net outflows and 0.16 percent of AUM in June 2020.

In Q2 2021, small fund firms brought in an estimated $9.511 billion in net inflows. That's equivalent to 1.75 percent of their combined AUM and accounted for 2.99 percent of industry inflows.

In the first six months of 2021, small fund firms brought in an estimated $21.536 billion in net inflows. That's equivalent to 3.97 percent of their combined AUM and 2.98 percent of industry inflows.

For the 12 months ending on June 30, 2021, small fund firms brought in an estimated $18.116 billion in net inflows. That's equivalent to 3.33 percent of their combined AUM and 1.71 percent of industry inflows.

Across the entire industry, the 768 fund firms (up from 760 in May 2021 and 758 in June 2020) tracked by the M* team brought in a combined $105.503 billion in estimated net long-term fund inflows in June 2021, equivalent to about 0.4 percent of long-term fund AUM of $26.534 trillion. That's up from $82.763 billion and $26.156 trillion in May 2021 and $69.822 billion and $19.904 trillion in June 2020.

Active funds brought in an estimated $24.578 billion in net June 2021 inflows, up M/M from $11.451 billion but down Y/Y from $28.617 billion. Passive funds brought in $80.917 billion in June 2021, up M/M from $71.312 billion and up Y/Y from $41.295 billion.

In Q2 2021, long-term funds brought in an estimated $318.154 billion in net inflows, equivalent to 1.2 percent of long-term fund AUM. In the first half of 2021, long-term funds brought in $722.557 billion in net inflows, equivalent to 2.72 percent of their AUM. And in the 12 months ending June 30, 2021, long-term funds brought in $1.058807 trillion in net inflows, equivalent to 3.99 percent of their AUM.

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