MutualFundWire.com: Schwab Dominates, Raking In $38B

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Thursday, January 19, 2023

Schwab Dominates, Raking In $38B

A publicly traded brokerage's asset management arm dominated large firm inflows last year, bringing in nearly four times as much as the next biggest winner in the group.

Omar Aguilar
Schwab Asset Management
CEO, Chief Investment Officer

This article draws from Morningstar Direct data for December 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 22 firms (down year-over-year from 25 in December 2021) with between $100 billion and $500 billion each in long-term fund AUM.

Large fund firms had a combined $4.346 trillion in total long-term fund AUM as of December 31, 2022, and they accounted for 19.2 percent of overall industry long-term fund AUM. That companres with $4.555 trillion and 19.1 percent on November 30, 2022, and with $5.345 trillion and 19.03 percent on December 31, 2021.

Three large fund firms brought in net long-term inflows last month, down month-over-month from four in November 2022 and down Y/Y from 15 in December 2021.

Schwab kept the large fund firm inflows lead last year, bringing in an estimated $38.334 billion in net 2022 inflows. Other big inflows winners included: First Trust, $9.62 billion; Edward Jones' Bridge Builder, $9.085 billion; American Century (including Avantis), $4.808 billion; and DFA, $829 million.

Schwab also led the way in the fourth quarter of 2022, bringing in $9.816 billion in net inflows. Other big Q4 2022 inflows winners included: American Century, $3.087 billion; and First Trust, $2.28 billion.

And Schwab led the inflows pack last month for a second month in a row, thanks to an esetimated $3.892 billion in net December 2022 inflows, up M/M from $2.954 billion in November 2022 and up Y/Y from $3.757 billion in December 2021. Other big December 2022 inflows winners included: American Century, $1.291 billion (up M/M from $1.288 billion, up Y/Y from $464 million); and First Trust, $176 million (down M/M from $1.257 billion, down Y/Y from $1.373 billion).

On the flip side, 2022 was a rough year for Allianz's Pimco, which led the large fund firm outflows pack thanks to an estimated $53.015 billion in net outflows. Other big 2022 outflows sufferers included: Franklin Templeton, $50.102 billion; Lord Abbett, $30.025 billion; Morgan Stanley (including Eaton Vance and Calvert), $30.025 billion; and Ameriprise's Columbia Threadneedle.

Pimco also led the outflows pack in Q4 2022, thanks to an estimated $15.821 billion in net outflows. Other big outflows sufferers included: Franklin Templeton, $14.16 billion; and Lord Abbett, $8.952 billion.

And Pimco took the outflows lead last month, thanks to an estimated $7.384 billion in net December 2022 outflows, up M/M from $2.484 billion in November 2022 and up Y/Y from $556 million in December 2021. Other big December 2022 outflows sufferers included: Franklin Templeton, $5.908 billion (up M/M from $3.974 billion, up Y/Y from $2.722 billion); and Lord Abbett, $3.058 billion (up M/M from $1.884 billion, down Y/Y from $305 million in net inflows).

As a group, large fund firms suffered $238.617 billion in net 2022 outflows, down from $178.133 billion in net 2021 inflows. For 2022, that's equivalent to 5.47 percent of large firms' overall AUM and accounts for 66.05 percent of overall industry long-term 2022 outflows.

In Q4 2022, large firms suffered $90.687 billion in net outflows. That's equivalent to 2.08 percent of their combined AUM and accounts for 55.02 percent of industry outflows.

And in December 2022, large firms sufferered $33.894 billion in net outflows, equivalent to 0.78 percent of their combined AUM and accounting for 39.49 percent of overall industry outflows. That compares with $26.992 billion in net outflows, 0.59 percent of AUM, and 51.19 percent of industry outflows in November 2022, and with $7.473 billion in net inflows, 0.14 percent of their combined AUM, 8.53 percent of industry inflows in December 2021.

Across the entire industry, the 788 firms tracked by the M* team (down from 799 a year ago) suffered an estimated $361.242 billion in net outflows in 2022, equivalent to 1.59 percent of the industry's combined $22.731 trillion in AUM, and the industry had 42,192 long-term funds and ETFs. That's down Y/Y from $1.21309 trillion in 2021 inflows, when the industry had $28.084 trillion in AUM.

In Q4 2022, the industry suffered $164.816 billion in net outflows. That's equivalent to 0.73 percent of the industry's AUM.

In December 2022, the industry suffered $85.82 billion in net outflows, equivalent to 0.38 percent of its AUM. That compares with $52.733 billion and 0.22 percent in November 2022, and with $87.633 billion in net inflows and 0.31 percent in December 2021.

Passive funds brought in $35.056 billion in net December 2022 inflows, down M/M from $42.638 billion in November 2022 and down Y/Y from $95.932 billion in December 2021. Yet active funds suffered $121.317 billion in net December 2022 outflows, up M/M from $95.552 billion and up Y/Y from $8.299 billion.

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