MutualFundWire.com: Micro Inflows Jump 73 Percent to $1.26B

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Wednesday, September 22, 2021

Micro Inflows Jump 73 Percent to $1.26B

A fixed income boutique took the lead last month among the smallest fund firms as the group's inflows and marketshare both rose.

Joshua Stephan "Josh" Friedman
Canyon Partners
Co-Founder, Co-Chairman, Co-CEO

This article draws from Morningstar Direct data on August 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 496 firms (up from 495 in August 2020) with less than $1 billion each in fund AUM.

Micro fund firms had $97 billion in total long-term AUM as of August 31, 2021, accounting for 0.36 percent of overall industry long-term fund AUM. That compares with $95 billion and 0.35 percent on July 31, 2021, and with $93 billion and 0.43 percent on August 31, 2020.

258 of those micro fund firms brought in net inflows last month, down from 260 in July 2021 but up from 215 in August 2020.

Canyon Partners' River Canyon took the lead last month among micro fund firms, thanks to an estimated $228 million in net August 2021 inflows, up month-over-month from $13 million in July 2021 and up year-over-year from $10 million in August 2020. Other big August 2021 inflows winners included: CrossingBridge, $105 million (up M/M from $43 million, up Y/Y from $6 million); Howard Capital Management, $104 million (up M/M from $9 million, up Y/Y from $32 million); Microsectors, $77 million (up M/M from $23 million, up Y/Y from $30 million); and Hanlon, $67 million (up M/M from $3 million in net outflows, up Y/Y from $4 million in net outflows).

Last month included one apparent newcomer: the World Funds Trust.

Horizon Kinetics led the micro fund firm inflows pack year-to-date as of August 31, 2021, thanks to an estimated $641 million in net inflows. Other big YTD inflows winners included: River Canyon, $591 million; and Sprucegrove Investment Management, $434 million.

The same three micro firms led the pack for the 12-month period ending August 31, 2021. River Canyon brought in an estimated $648 million in net inflows, Horizon Kinetics brought in $641 million, and Sprucegrove brought in $434 million.

On the flip side, last month was a rough one for Schroder, which led the micro fund firm outflows pack thanks to an estimated $63 million in net August 2021 outflows, up M/M from $3 million in July 2021 and up Y/Y from $6 million in August 2020. Other big August 2021 outflows sufferers included: Bramshill, $54 million (down M/M from $22 million in net inflows, down Y/Y from $4 million in net inflows); Aegis, $50 million (up M/M from $14 million, up Y/Y from $1 million); Renaissance, $48 million (down M/M from $62 million, down Y/Y from $41 million in net inflows); and Berkshire, $29 million (down M/M from $32 million, down Y/Y from $15 million in net inflows).

Sunbridge Capital Partners led the micro fund firm outflows pack YTD as of August 31, 2021, thanks to an estimated $1.673 billion in net outflows. Other big YTD outflows sufferers included: Muzinich, $402 million; and Schroder, $398 million.

Sunbridge also led the micro outflows pack for the 12-month period ending August 31, 2021, thanks to an estimated $1.687 billion in net outflows. Other big outflows sufferers included: Phaeacian, $404 million; and Muzinich, $388 million.

As a group, micro fund firms brought in an estimated $1.26 billion in net August 2021 inflows, equivalent to about 1.3 percent of their combined AUM and accounting for 1.29 percent of overall industry long-term inflows. That compares with $729 million, 0.76 percent of AUM, and 0.95 percent of industry inflows in July 2021, and $553 million, 0.6 percent of AUM, and 1.3 percent of industry inflows in August 2020.

In the first eight months of 2021, micro firms brought in an estimated $5.99 billion in net inflows. That's equivalent to 6.18 percent of their combined AUM and accounted for 0.67 percent of overall industry long-term inflows.

For the 12-month period ending August 31, 2021, micro firms brought in an estimated $5.625 billion in net inflows. That's equivalent to 5.8 percent of their combined AUM and accounted for 0.49 percent of overall industry long-term inflows.

Across the entire industry, the 776 fund firms (up from 774 in July 2021 and 752 in August 2020) tracked by the M* team brought in a combined $97.458 billion in net long-term inflows in August 2021, equivalent to 0.35 percent of industry long-term AUM of $27.175 trillion. That compares with $77.077 billion and $26.898 trillion in July 2021 and $41.403 billion and $21.561 trillion in August 2020.

Active funds brought in an estimated $19.829 billion in net August 2021 inflows, up M/M from $14.693 billion in July 2021 but down Y/Y from $25.255 billion in August 2020. Passive funds brought in an estimated $77.739 billion in August 2021 inflows, up M/M from $57.431 billion and up Y/Y from $16.178 billion.

In the first eight months of 2021, long-term funds brought in an estimated $892.153 billion in net inflows, equivalent to 3.28 percent of long-term fund AUM. And in the 12-month period ending August 31, 2021, long-term funds brought in $1.146073 trillion in net inflows, equivalent to 4.225 of their AUM.

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