A publicly traded bank's asset management squeaked past the Low-Cost Leviathan last year to win the 2023 inflows race among large fund firms, according to the latest data from the folks at a publicly traded investment research firm.

This article draws from Morningstar Direct data on December 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 65 firms with between 100 and 999 long-term mutual funds and ETFs each.

SSGA took the lead last year, thanks to an estimated $77.411 billion in net 2023 inflows, up year-over-year from $24.641 billion in 2022. Other big 2023 inflows winners included: Vanguard, $76.739 billion (down Y/Y from $82.725 billion); Schwab, $27.54 billion (down Y/Y from $38.334 billion); WisdomTree, $9.672 billion (down Y/Y from $14.569 billion); and DFA, $6.968 billion (up Y/Y from $829 million).

SSGA also led the way last quarter, thanks to an estimated $63.29 billion in net inflows in the fourth quarter of 2023. Other big Q4 2023 inflows winners included: Vanguard, $14.159 billion; and Schwab, $7.836 billion.

And SSGA also led the inflows pack for a second consecutive month, thanks to an estimated $45.479 billion in net December 2023 inflows. Other big winners included: Vanguard, $11.622 billion; and Schwab, $3.538 billion.

On the flip side, Capital Group (home of American Funds) led the outflows pack last year, thanks to an estimated $53.523 billion in net 2023 outflows, up Y/Y from $50.562 billion in 2022. Other big 2023 outflows sufferers included: T. Rowe Price, $49.25 billion (down Y/Y from $59.161 billion); Lord Abbett, $13.041 billion (down Y/Y from $30.025 billion); Macquarie (home of Delaware Funds), $12.221 billion (down Y/Y from $16.239 billion); and Jackson, $12.213 billion (up Y/Y from $9.295 billion).

Cap Group also led the way last quarter, thanks to an estimated $22.27 billion in net Q4 2023 outflows. Other big outflows sufferers included: T. Rowe, $10.786 billion; and TCW (including MetWest), $7.686 billion.

And Cap Group also led the outflows pack for a second month running, thanks to an estimated $9.576 billion in net December 2023 outflows. Other big outflows sufferers included: T. Rowe, $5.366 billion; and TCW, $1.939 billion.

As a group, large firms suffered an estimated $49.148 billion in net 2023 outflows, ending the year with $16.755 trillion in AUM across 23,401 funds. At the end of 2023, large firms accounted for 63.2 percent of industry AUM and 55.2 percent of industry funds, and 17 large firms brought in net inflows last year.

In Q4 2023, large firms suffered $11.559 billion in net outflows. 13 large firms brought in net inflows that quarter.

Yet in December, large firms brought in $26.359 billion in net inflows, accounting for 46.2 percent of overall industry inflows. 19 large firms brought in net inflows that month.

Across the industry, the 782 firms tracked by the M* team (down Y/Y from 788) brought in an estimated $82.506 billion in 2023 inflows, ending the year with $26.527 trillion in AUM across 42,423 funds. That compares with $361.242 billion in net 2022 outflows and $22.731 trillion in AUM across 42,192 funds.

In Q4 2023, the industry brought in $41.325 billion in net inflows. 293 firms brought in net Q4 inflows.

And in December 2023, the industry brought in $57.098 billion in net inflows. 294 firms brought in net December 2023 inflows.

***This caveat is particularly important for larger fund firms, many of which are big players in the 401(k) business, where collective investment trusts (CITs) and separately managed accounts (SMAs) are commonly used alternatives to traditional mutual funds. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE