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Monday, January 29, 2018

Bridge Builder Dominated 2017

Reported by Neil Anderson, Managing Editor

Among midsize fund firms, Edward Jones' Bridge Builder dominated the field in 2017.

The fund flows information within this article draws from Morningstar Direct data. This article digs into fund flows for the full 2017 calendar year. See our companion article for information on fund flows for December 2017.

Bridge Builder brought in an estimated $13.786 billion in net inflows last year, more than any fund firm with between $10 billion and $100 billion in AUM. Other big inflows winners in 2017 in the midsize range included: Guggenheim, $12.413 billion; First Trust, $9.726 billion; Baird, $8.752 billion; and Harris' Oakmark, $7.91 billion.

Bridge Builder led the midsize pack last year proportionately, too, bringing in estimated net inflows equivalent to 27.35 percent of its AUM. Other top midsize winners last year proportionately included: Baird, 20.44 percent; Guggenheim, 18.06 percent; Edgewood, 18.05 percent; and First Trust, 17.96 percent.

On the flip side, 2017 was a rough year for Harbor, which suffered $13.451 billion in estimated net outflows, more than any other midsize fund firm. Other big sufferers included: GMO, $10.353 billion; Wells Fargo $9.607 billion; Voya, $8.63 billion; and Deutsche, $6.438 billion.

Proportionately, Allianz led the midsize fund firm outflows pack in 2017, suffering estimated net outflows equivalent to 30.8 percent of its AUM. Other big sufferers included: Royce, 22.39 percent; GMO, 21.55 percent; Harbor, 19.38 percent; and Touchstone, 17.31 percent.

As a group, fund families with between $10 billion and $100 billion in AUM suffered $6.944 billion in estimated net outflows in 2017, equivalent to 0.22 percent of their combined AUM.

Last week M* released a report about industrywide flows, and MFWire highlighted the biggest winners and losers among the largest fund firms. Across the whole industry, long-term, active mutual funds suffered estimated net outflows of $6.991 billion, while money funds brought in net inflows of $107.096 billion and passive funds brought in $691.589 billion. Within long-term, active mutual funds, taxable bond funds, international equity funds, muni bond funds, liquid alts, and commodities funds all had net inflows in 2017, while U.S. equity funds, allocation funds, and sector equity funds all suffered net outflows. 

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