MutualFundWire.com: Midsize Flows Improve By $36B

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Tuesday, February 21, 2023

Midsize Flows Improve By $36B

Net flows into midsize fund firms improved by more than $36 billion last month and were even up a bit year-over-year.

Michael Lynn Sapir
ProShare Advisors, ProFund Advisors
CEO

This article draws from Morningstar Direct data on January 2023 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 72 firms (up month-over-month from 71 in December 2022 but down year-over-year from 76 in January 2022) with between $10 billion and $100 billion each in long-term fund AUM.

Midsize firms had $2.465 trillion in combined long-term fund AUM across 12,615 funds as of January 31, 2023, and they accounted for 10.2 percent of overall industry long-term fund AUM. That compares with $2.352 trillion and 10.35 percent of industry AUM on December 31, 2022, and with $2.716 trillion and 10.17 percent of industry AUM on January 31, 2022.

34 midsize firms brought in net inflows in January 2023, up M/M from 11 in December 2022 but down Y/Y from 35 in January 2022.

ProShares and ProFunds took the lead last month, thanks to an estimated $1.868 billion in January 2023 inflows, up M/M from $465 million in December 2022 but down Y/Y from $2.797 billion in January 2022. Other big January 2023 inflows winners included: Pacer, $1.454 billion (up M/M from $942 million, up Y/Y from $646 million); Baird (including Strategas), $702 million (up M/M from $220 million in net outflows, down Y/Y from $1.124 billion in net inflows); GQG, $696 million (up M/M from $52 million, up Y/Y from $414 million); and Guggenheim (including Rydex), $554 million (up M/M from $1.489 billion in net outflows, up Y/Y from $261 million in net outflows).

Pacer led the way proportionately last month, thanks to net January 2023 inflows equivalent to 6.6 percent of its AUM. Other big inflows winners included: GGQ, 4.9 percent; Innovator, 3.5 percent; KraneShares, 3.2 percent; and ProShares, 3 percent.

On the flip side, Macquarie (home of the Delaware funds) took the outflows lead last month, thanks to an esetimated $985 million in net January 2023 outflows, down M/M from $1.076 billion in December 2022 and down Y/Y from $1.214 billion in January 2022. Other big January 2023 outflows sufferers included: Northern (including Flexshares), $693 million (down M/M from $1.075 billion, down Y/Y from $111 million in net inflows); Virtus, $463 million (down M/M from $1.718 billion, down Y/Y from $1.32 billion); Calamos, $442 million (down M/M from $590 million, down Y/Y from $931 million in net inflows); and SEI, $324 million (down M/M from $665 million, up Y/Y from $109 million).

Alger led the pack proportionately last months, thanks to net January 2023 outflows equivalent to 2 percent of its AUM. Other big outflows sufferers included: Calamos, 1.9 percent; Resolute's American Beacon, 1.3 percent; GMO, 1.2 percent; and Raymond James' Carillon, 1.2 percent.

As a group, midsize fund firms brought in $4.092 billion in net January 2023 inflows, equivalent to 0.17 percent of their combined AUM and accoutning for 9.59 percent of overall industry long-term inflows. That compares with $32.146 billion in net outflows, 1.37 percent of AUM, and 37.46 percent of industry outflows in December 2022, and with $3.687 billion in net inflows, 0.14 percent of AUM, and 41.26 percent of industry inflows in January 2022.

Across the entire industry, the 783 firms tracked by the M* team (down M/M from 788, down Y/Y from 797) brought in an estimated $42.682 billion in net January 2023 inflows, equivalent to 0.18 percent of overall long-term fund AUM of $24.165 trillion, across 42,338 funds. That's up M/M from $85.82 billion in net outflows and 0.38 percent of AUM in December 2022, and up Y/Y from $8.936 billion in net inflows and 0.03 percent of AUM in January 2022.

Passive funds brought in $47.436 billion in net long-term fund inflows in January 2023, up M/M from $35.056 billion in December 2022 and up Y/Y from $22.087 billion in January 2022. Yet active funds suffered $4.367 billion in net January 2023 outflows, down M/M from $121.317 billion and down Y/Y from $13.138 billion.

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