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Outflows Fall 98 Percent Among the Smallest Firms
Outflows fell more than 98 percent last month among the smallest fund firms.
This article draws from Morningstar Direct data on April 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 515 firms (down month-over month from 523 in March 2023 and down year-over-year from 524 in April 2022) with less than $1 billion each in long-term fund AUM.
Micro fund firms had $99 billion in total long-term AUM across 2,760 funds and accounting for 0.41 percent of overall industry long-term fund AUM. That compares with $100 billion, 2,836 funds, and 0.41 percent of AUM in June 2023, and with $98 billion and 0.4 percent of AUM.
193 of those micro fund firms brought in net inflows in April 2023. That's up M/M from 197 in March 2022 and up Y/Y from 235 in March 2023.
VS Trust took the micro firm inflows lead last month, thanks to an estimated $80 million in net April 2023 inflows, up M/M from $48 million in March 2023 and up Y/Y from $36 million in April 2022. Other big inflows winners included: Simplify, $66 million (up M/M from $50 million in net outflows, up Y/Y from $39 million in net inflows); YieldMax, $46 million (up M/M from $23 million); River Canyon, $43 million (up M/M from $21 million, down Y/Y from $117 million); and Ambrus, $33 million (up M/M from $32 million).
Last month there were at least two apparent newcomers, including MKAM and Morgan Dempsey.
Ambrus leads the pack so far in 2023, thanks to an estimated $191 million in net inflows year-to-date as of April 30, 2023. Other big YTD inflows winners included: Strive, $181 million; and Kovitz, $154 million.
On the flip side, DF Dent took the outflows lead last month, thanks to an estimated $69 million in net April 2023 outflows, up M/M from $14 million in March 2023 and up Y/Y from $5 million in April 2022. Other big April 2023 outflows sufferers included: Lyrical, $56 million (down M/M from $93 million, down Y/Y from $8 million in net inflows); Semper, $42 million (up M/M from $24 million, down Y/Y from $142 million); Palmer Square, $41 million (up M/M from $10 million, down Y/Y from $31 million in net inflows); and AlphaCentric, $34 million (down M/M from $67 million, down Y/Y from $234 million).
Callahan's Trust for Credit Unions leads the 2023 outflows pack so far, thanks to an estimated $523 million in net YTD outflows as of April 30. Other big outflows sufferers include: AlphaCentric, $163 million; and Lyrical, $134 million.
As a group, micro fund firms suffered an estimated $8 million in net April 2023 outflows, equivalent to 0.01 percent of their combined AUM. That compares with $451 million and 0.45 percent in March 2023, and with $1.156 billion in net inflows and 1.18 percent in April 2022.
So far in 2023, micro fund firms have brought in an estimated $154 million in net YTD inflows, as of April 30. That translates into 0.16 percent of their combined AUM.
Across the industry, the 776 firms tracked by the M* team (down M/M from 785, down Y/Y from 796), brought in $6.565 billion in net inflows in April 2023, equivalent to 0.03 percent of their combined $24.131 trillion in AUM across 42,060 funds. That compares with $25.527 billion in net outflows, 0.11 percent of AUM, $23.968 trillion in AUM, and 42,221 funds in March 2023, and with $89.224 billion in net outflows, 0.36 percent of AUM, and $24.585 trillion in AUM in April 2022.
Active funds suffered an estimated $30.68 billion in net outflows in April 2023, down M/M from $58.306 billion and down Y/Y from $86.386 billion. On the flip side, passive funds brought in $37.244 billion in net April 2023 inflows, up M/M from $32.778 billion and up Y/Y from $2.838 billion in net outflows.
So far in 2023, the industry has brought in $22.844 billion in net inflows as of April 30. That's equivalent to 0.09 percent of overall industry AUM.
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