MutualFundWire.com: A 66-Year-Old Boutique Leads, But Small Firms' Inflows Slow

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Thursday, March 17, 2022

A 66-Year-Old Boutique Leads, But Small Firms' Inflows Slow

The asset management arm of a 66-year-old trust company took the lead lastmonth among fund firms. Yet the category's marketshare fell.

Kent E. Weaver, Jr.
Glenmede Investment Management LP
President

This article draws from Morningstar Direct data on February 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 167 firms (down month-over-month from 170 in January 2022 but up year-over-year from 166 in February 2021) with between $1 billion and $10 billion each in long-term fund AUM.

Small firms had $519 billion in total long-term fund AUM as of February 28, 2022, accounting for 1.98 percent of overall industry long-term fund AUM. That compaares with $539 billion and 2.02 percent on January 31, 2022, and with $548 billion and 2.26 percent on February 28, 2021.

93 of those small fund firms brought in net inflows last month, down from 103 in January 2022 and down from 98 in February 2021.

Glenmede took the lead last month, thanks to an estimated $339 million in February 2022 inflows, up M/M from $217 million in January 2022 and up Y/Y from $198 million in February 2021 outflows. Other big February 2022 inflows winners included: Innovator ETFs, $304 million (down M/M from $315 million, up Y/Y from $135 million); U.S. Global Investors, $230 million (down M/M from $332 million, down Y/Y from $341 million); Smead, $183 million (down M/M from $320 million, up Y/Y from $24 million); and Canyon Partners' River Canyon, $167 million (up M/M from $60 million, up Y/Y from $11 million).

River Canyon took the lead proportionately last month, thanks to estimated net February 2022 inflows equivalent to 13.1 percent of its AUM. Other big inflows winners included: Highland, 11.7 percent; Cambria, 8.4 percent; AdvisorShares, 7.9 percent; and Stone Ridge, 7 percent.

As of February 28, Innovator led the small firm inflows pack for 2022, thanks to an estimated $618 million in net year-to-date inflows. Other big YTD inflows winners included: U.S. Global Investors, $568 million; and Glenmede, $556 million.

On the flip side, AlphaCentric took the outflows lead last month, thanks to an estimated $785 million in net February 2022 outflows, up M/M from $66 million in January 2022 but down Y/Y from $104 million in February 2021 inflows. Other big February 2022 outflows sufferers included: Frontier, $535 million (up M/M from $7 million, down Y/Y from $17 million in net inflows); Callahan Financial Services' Trust for Credit Unions, $500 million (up M/M from $234 million, down Y/Y from $342 million in net inflows); Angel Oak, $223 million (down M/M from $242 million in inflows, down Y/Y from $152 million in net inflows); and Semper, $216 million (up M/M from $58 million, up Y/Y from $18 million).

Frontier took the lead proportionately last month, suffering estimated net February 2022 outflows equivalent to 22.4 percent of its AUM. Other big outflows sufferers included: AlphaCentric, 21 percent; Semper, 18.1 percent; Trust for Credit Unions, 14.7 percent; and RiverPark, 5.3 percent.

As of February 28, AlphaCentric led the 2022 outflows pack, thanks to an estimated $850 million in net YTD outflows. Other big outflows sufferers included: Trust for Credit Unions, $734 million; and Frontier, $542 million.

As a group, small fund firms brought in an estimated $895 million in net February 2022 inflows, equivalent to 0.17 percent of their combined AUM and accounting for 1.83 ;ercent of overall industry long-term inflows. That compares with $2.877 billion, 0.53 percent of AUM, and 32.2 percent of industry inflows in January 2022, and with $5.677 billion, 1.04 percent of AUM, and 3.93 percent of industry inflows in February 2021.

As of February 28, small firms had $4.046 billion in net YTD inflows. That's equivalent to 0.78 percent of their combined AUM and accounts for 7.21 percent of overall industry inflows.

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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