MutualFundWire.com: Schwab's Five-Month-Old Lead Widens

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Tuesday, March 15, 2022

Schwab's Five-Month-Old Lead Widens

A brokerage giant's asset management arm leads again, despite the large fund firm segment's net inflows disappearing.

Jonathan Christian de St. Paer
Charles Schwab Investment Management, Inc.
President, CEO

This article draws from Morningstar Direct data for February 2022 mutual fund and ETF flows, excluding money market funds and funds of funds. (Other asset management products, like collective trusts and SMAs, are also not included.) More specifically, this article focuses on the 26 firms (up from 25 in January) with between $100 billion and $500 billion each in long-term fund AUM.

Large fund firms had a combined $5.174 trillion in long-term fund AUM as of February 28, 2022, and they accounted for 19.73 percent of overall industry long-term fund AUM. That compares with $5.137 trillion and 19.23 percent on January 31.

Eight large fund firms brought in net long-term fund inflows last month, down from 12 in January.

Charles Schwab kept the lead for the fifth month in a row, thanks to an estimated $4.508 billion in net February 2022 inflows, down month-over-month from $4.581 billion in January 2022 but up year-over-yeaer from $3.703 billion in February 2021. Other big February 2022 inflows winners included: First Trust, $1.678 billion (up M/M from $710 million, down Y/Y from $1.784 billion); Edward Jones' Bridge Builder, $922 million (up M/M from $708 million, down Y/Y from $1.494 billion); Dodge & Cox, $590 million (up M/M from $250 million, up Y/Y from $874 million in net outflows); and Principal, $491 million (up M/M from $601 million in net outflows, up Y/Y from $96 million in net outflows.

As of February 28, Schwab also led the 2022 large fund firm inflows pack, thanks to an estimated $9.053 billion in year-to-date inflows. Other big YTD inflows winners included: First Trust, $2.381 billion; and DFA, $1.748 billion.

On the flip side, Allianz's Pimco took the outflows lead among large fund firms last month, thanks to an estimated $2.032 billion in net February 2022 outflows, up M/M from $971 million in January 2022 but down Y/Y from $2.994 billion in net February 2021 inflows. Other big February 2022 outflows sufferers included: TCW (including MetWest), $1.739 billion (up M/M from $920 million, up Y/Y from $992 million); Lord Abbett, $1.724 billion (up M/M from $569 million, down Y/Y from $2.317 billion in net inflows); Morgan Stanley (including Eaton Vance and Calvert), $1.33 billion (up M/M from $1.049 billion, down Y/Y from $696 million in net inflows); and PGIM, $1.167 billion (down M/M from $807 million in net inflows, down Y/Y $1.119 billion in net inflows).

Pimco also leads the large fund firm outflows pack in 2022, thanks to an estimated $3.003 billion in net YTD outflows as of February 28. Other big YTD outflows sufferers included: TCW, $2.659 billion; and Morgan Stanley, $2.385 billion.

As a group, the 26 large fund firms suffered an estimated $6.634 billion in net February 2022 outflows, equivalent to about 0.13 percent of their combined AUM. That's down from $1.819 billion in net January 2022 inflows, equivalent to 0.04 percent of combined AUM.

As of February 28, 2022, large fund firms have suffered an estimated $4.319 billion in net YTD outflows, equivalent to 0.08 percent of their combined AUM.

Across the entire industry, the 795 firms tracked by the M* team (down M/M from 797 but up Y/Y from 753) brought in an estimated $47.85 billion in net February 2022 inflows, equivalent to 0.18 percent of overall long-term fund AUM of $26.219 trillion on February 28, 2022. That's up M/M from $8.936 billion in January 2022 inflows, equivalent to 0.03 percent of $26.709 trillion in AUM, but down Y/Y from $144.457 billion in February 2021 inflows, equivalent to 0.6 percent of $24.208 trillion in AUM.

Passive funds brought in $80.09 billion in net long-term fund inflows in February 2022, up M/M from $22.087 billion but down Y/Y from $91.347 billion. Active funds suffered $32.24 billion in net long-term fund outflows in February 2022, up M/M from $13.138 billion but down Y/Y from $53.109 billion in net inflows.

YTD, long-term funds have brought in $56.119 billion in net inflows industrywide, equivalent to 0.21 percent of long-term fund AUM.

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