Mid-size fund firms' outflows dominated last month as mutual fund flows for the industry swung negative.
| Daniel Simkowitz|
Head of Investment Management
This article draws from Morningstar Direct
data on August 2019 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. More specifically, this article focuses on the 75 firms with between $10 billion and $100 billion each in fund AUM. 27 of those firms gained net inflows in August, down from 30 in July
kept the lead last month among mid-size fund firms, with estimated net August inflows of $827 million, yet those inflows still fell 39.9 percent from $1.451 billion in July. Other big August winners included: AllianceBernstein
, $523 million (down from $557 million); Baird
, $498 million (down from $1.439 billion); Edward Jones' Bridge Builder
, $420 million (down from $598 million); and Rafferty's Direxion
, $362 million (up from $566 million in net outflows).
Proportionately, Direxion took the mid-size pack lead, with estimated net August inflows equivalent to 2.69 percent of its AUM, up from 4.28 percent in net outflows in July. Other big August winners included: Brown Advisory
, 1.98 percent (up from 1.87 percent); UBS
, 1.9 percent (up from 2.7 percent in net outflows); Akre
, 1.68 percent (up from 1.02 percent); and Morgan Stanley, 1.67 percent (down from 2.79 percent).
On the flip side, August was another rough month for Harris' Oakmark
, which suffered an estimated $1.478 billion in net outflows, again more than any other mid-size fund firm and up from $1.206 billion in July. Other big August sufferers included: WisdomTree
, $1.142 billion (up from $117 million); DWS
, $1.116 billion (up from $170 million); AQR
, $920 million (up from $491 million); and Waddell & Reed's Ivy
, $911 million (up from $835 million).
Proportionately, AQR led the mid-size outflows pack last month, suffering estimated net August outflows equivalent to 3.98 percent of its AUM, up from 2.05 percent in July. Other big August sufferers included: WisdomTree, 3.13 percent (up from 0.3 percent); AIG
, 2.96 percent (up from 2.57 percent); Matthews Asia
, 2.62 percent (up from 2.3 percent); and Glenmede
, 2.4 percent (up from 1.47 percent).
As a group, the 75 mid-size fund firms suffered an estimated $11.522 billion in combined net August outflows, equivalent to about 0.43 percent of their combined AUM. That's up from $2.342 billion in net July outflows. Put another way, in August mid-size fund firms accounted for 72.34 percent of net industry outflows.
Across the whole industry (M* tracks flows from 767 firms, down from 771 in July), long-term mutual funds and ETFs suffered a combined $15.927 billion in net outflows in August, equivalent to about 0.08 percent of industry AUM. That's down from $26.698 billion in net July inflows. Passive funds suffered $4.7 billion in net August outflows, while active funds suffered $11.227 billion in net outflows.
Editor's Note: Calculations for this story overlooked one of the 75 mid-size fund firms tracked in Morningstar Direct's data. After adding that firm's numbers into the calculations, the overall figures above have been updated accordingly.
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