MutualFundWire.com: Bridge Builder's Inflows Triple As Large Firms' Outflows Rise

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Wednesday, June 21, 2023

Bridge Builder's Inflows Triple As Large Firms' Outflows Rise

A Midwestern B-D's mutual fund arm took the inflows lead last month among large fund firms, even as the group's outflows climbed by $1.57 billion.

Ryan Timothy Robson
Edward Jones / Olive Street Investment Advisers, LLC
Principal, Client Strategy Group / President

This article draws from Morningstar Direct data on May 2023 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 23 firms (down year-over-year from 24 in May 2022) with between $100 billion and $500 billion each in long-term fund AUM.

Large fund firms had a combined $4.621 trillion in total long-term fund AUM across 14,459 funds as of May 31, 2023, and they accounted for 19.33 percent of overall industry long-term fund AUM. That compares with $4.686 trillion, 14,924 funds, and 19.42 percent of AUM on April 30, 2023, and with $5.006 trillion and 20.31 percent on May 31, 2022.

Seven large fund firms brought in net inflows last month. That's up month-over-month from six in April 2023 and up year-over-year from four in May 2022.

Edward Jones' Bridge Builder took the inflows lead last month, thanks to an estimated $2.142 billion in net May 2023 inflows, up M/M from $697 million in April 2023 and up Y/Y from $69 million in May 2022 outflows. Other big May 2023 inflows winners included: Schwab, $1.115 billion (up M/M from $757 million, down Y/Y from $2.226 billion); Allianz's Pimco, $1.069 billion (up M/M from $104 million in net outflows, up Y/Y from $5.785 billion in net outflows); American Century (including Avantis), $335 million (down M/M from $339 million, down Y/Y from $622 million); and Goldman Sachs, $286 million (up M/M from $554 million in net outflows, up Y/Y from $1.864 billion in net outflows).

Schwab still leads the 2023 large firm inflows pack so far, thanks to an estimated $12.399 billion in net year-to-date inflows as of May 31. Other big YTD inflows winners include: Bridge Builder, $6.163 billion; and DFA, $5.235 billion.

On the flip side, last month was another rough one for Franklin Templeton (including Royce), which led the outflows pack for a fourth month in a row, this time thanks to $2.688 billion in net May 2023 outflows, up M/M from $2.016 billion in April 2023 but down Y/Y from $6.54 billion in May 2022. Other big May 2023 outflows sufferers included: TIAA's Nuveen, $1.718 billion (up M/M from $362 million, down Y/Y from $2.203 billion); Lord Abbett, $1.535 billion (up M/M from $1.434 billion, down Y/Y from $3.969 billion); SunLife's MFS, $1.169 billion (down M/M from $646 million in net inflows, down Y/Y from $2.731 billion in net outflows); and Ameriprise's Columbia Threadneedle, $1.123 billion (up M/M from $1.1 billion, down Y/Y from $2.313 billion in net outflows.

Franklin also still leads the 2023 large firm outflows pack so far, thanks to an estimated $9.605 billion in net YTD outflows as of May 31. Other big YTD outflows sufferers included: Lord Abbett, $5.788 billion; and Columbia Threadneedle, $4.528 billion.

As a group, large fund firms suffered $7.623 billion in net May 2023 outflows, equivalent to 0.16 percent of their combined AUM. That's up M/M from $6.053 billion and 0.13 percent of AUM, but it's down Y/Y from $36.173 billion and 0.72 percent of AUM.

As of May 31, large fund firms had suffered $10.101 billion in net YTD 2023 outflows. That's equivalent to 0.22 percent of their combined AUM and amounts to more than 52 times total industry outflows.

Across the industry, the 780 firms tracked by the M* team (up M/M from 776, down Y/Y from 787) suffered $22.969 billion in net outflows in May 2023, equivalent to 0.1 percent of their combined $23.9 trillion in AUM across their 41,597 funds. That compares with $6.565 billion in net inflows, 0.03 percent of AUM, and 42,060 funds in April 2023, and with $39.103 billion in net outflows and 0.16 percent of AUM in May 2022.

Active funds suffered an estimated $44.016 billion in net outflows in May 2023, up M/M from $30.68 billion but down Y/Y from $109.837 billion. On the flip side, passive funds brought in $21.046 billion in net May 2023 inflows, down M/M from $37.244 billion in April 2023 and down Y/Y from $$70.729 billion in net inflows in May 2022.

So far in 2023, the industry has suffered $193 million in net outflows as of May 31. That's equivalent to 0.0008 percent of overall industry AUM.

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