A startup driven by performance fees took the lead last month among the smallest fund firms.

Peter S. Kraus Aperture Investors Chairman, CEO

This article draws from Morningstar Direct data on October 2020 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. More specifically, this article focuses on the 490 firms (down from 493 in September) with less than $1 billion each in long-term fund AUM. 197 of those firms gained net inflows in October (down from 198 in September), and 216 gained net year-to-date inflows as of the end of October.

Aperture Investors took the micro firm lead last month, thanks to an estimated $217 million in net October inflows, up from $1 million in net outflows in September. Other big October inflows winners included: Microsectors, $113 million (up from $24 million); Advisors Preferred, $96 million (up from $24 million); LeaderShares, $85 million (up from zero net flows); and Renaissance Capital, $84 million (down from $99 million).

Last month included one apparent newcomer: Regan Capital.

YTD, as of the end of October, Toroso led the micro fund firm pack with an estimated $740 million in net inflows. Other big YTD inflows winners included: Axonic, $613 million; Aperture, $429 million; Rational Funds, $412 million; and Defiance, $398 million.

On the flip side, October was a rough month for Phaeacian, which suffered an estimated $460 million in net outflows, more than any other micro fund firm. Other big October outflows sufferers included: Redwood, $145 million (up from $34 million); Teucrium, $52 million (down from $71 million in net inflows); Aware, $50 million (up from negligible outflows); and PPM America, $37 million (down from $2 million in net inflows).

YTD as of the end of October, Chiron led the micro pack with an estimated $740 million in net outflows. Other big YTD outflows sufferers included: Schroders, $712 million; CRM, $494 million; Phaeacian, $458 million; and Highland, $352 million.

As a group, micro fund firms suffered an estimated $45 million in net October outflows, equivalent to 0.05 percent of their combined AUM. That's down from $77 million in net September inflows. YTD, they suffered $814 million in net outflows, equivalent to 0.89 percent of their combined AUM.

Across the entire industry, the 756 fund firms (up from 751 in September) tracked by the M* team brought in an estimated $15.640 billion in net October inflows, up from 410.736 billion in September. Active fund firms suffered $6.934 billion in net October outflows, while passive funds brought in $22.583 billion in net inflows. YTD, long-term funds and ETFs have brought in an estimated $16.122 billion in net inflows. 

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