An ETF shop kept the lead last month among small fund firms as the group's inflows returned to positive territory.

Harold Bruce "Bruce" Bond Innovator Capital Management LLC President, CEO

This article draws from Morningstar Direct data for August 2022 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 166 firms (down from 169 in August 2021) with between $1 billion and $10 billion each in long-term fund AUM.

Small firms had $521 billion in total long-term fund AUM as of August 31, 2022, accounting for 2.22 percent of overall industry long-term fund AUM. That compares with $517 billion and 2.14 on July 31, 2022, and with $548 billion and 2.02 percent on August 31, 2021.

78 of those small fund firms brought in net inflows last month, up from 63 in July 2022 but down from 100 in August 2021.

Innovator kept the lead last month for a fifth month in a row, thanks to an estimated $445 million in net August 2022 inflows, up month-over-month from $341 million in July 2022 and up year-over-year from $16 million in August 2021. Other big August 2022 inflows winners included: Credit Suisse, $225 million (up M/M from $75 million, up Y/Y from $53 million); Catalyst, $174 million (down M/M from $191 million, up Y/Y from $73 million); AXS, $163 million (up M/M from $64 million in net outflows, up Y/Y from $34 million in net inflows); and Abbey Capital, $146 million (down M/M from $148 million, up Y/Y from $41 million).

AXS took the lead proportionately last month, thanks to estimated net August inflows equivalent to 11.9 percent of its AUM. Other big inflows winners included: Absolute Investment Advisers, 6.4 percent; PFM, 5.5 percent; Innovator, 5.4 percent; and Abbey, 4.8 percent.

Advanced Series Trust still leads the 2022 small firm inflows pack so far, thanks to an estimated $5.84 billion in net year-to-date inflows as of August 31. Other big YTD inflows winners included: Innovator, $2.967 billion; and Catalyst, $1.249 billion.

On the flip side, Angel Oak took the small firm outflows lead last month, thanks to an estimated $277 million in net August 2022 outflows, up M/M from $173 million in July 2022 and down Y/Y from $301 million in August 2021 inflows. Other big August 2022 outflows sufferers included: Osterweis, $170 million (down M/M from $96 million in net inflows, down Y/Y from $63 million in net inflows); JOHCM, $162 million (down M/M from $282 million, down Y/Y from $126 million in net inflows); Barclays, $127 million (up M/M from $91 million, down Y/Y from $14 million in net inflows); and Domini, $126 million (up M/M from $13 million, down Y/Y from $34 million in net inflows).

Callahan's Trust for Credit Unions again led the outflows pack proportionately last month, thanks to estimated net August 2022 ouotflows equivalent to 5.7 percent of its AUM. Other big outflows sufferers included: Domini, 5.6 percent; Advisors Preferred, 5.4 percent; Angel Oak, 4.6 percent; and Frontier, 4.5 percent.

Trust for Credit Unions also still leads the small firm outflows pack so far in 2022, thanks to an estimated $3.086 billion in net YTD outflows as of August 31. Other big outflows sufferers included: AlphaCentric, $2.776 billion; and Angel Oak, $2.301 billion.

As a group, small fund firms brought in $558 million in net inflows last month, equivalent to 0.11 percent of their combined AUM and accounting for 11.59 percent of overall industry long-term inflows. That compares with $2.41 billion in net outflows, 0.47 percent of AUM, and 18.55 percent of industry outflows in July 2022, and with $2.978 billion in net inflows, 0.54 percent of AUM, and 3.06 percent of industry inflows in August 2021.

Small fund firms have collectively suffered $9.953 billion in net 2022 outflows so far, as of August 31. That's equivalent to 1.91 percent of their combined AUM and accounts for 8.22 percent of overall industry long-term outflows YTD.

Across the entire industry, the 784 firms tracked by the M* team (up Y/Y from $776) brought in an estimated $4.816 billion in net August 2022 inflows, equivalent to 0.02 percent of their combined $23.433 trillion in AUM. That's up M/M from $12.991 billion in net outflows and 0.05 percent of AUM, but down Y/Y from $97.458 billion in net inflows and 0.35 percent of AUM.

Active funds suffered an estimated $33.062 billion in net August 2022 outflows, down M/M from $58.766 billion and down Y/Y from $19.829 billion in net inflows. Yet passive funds brought in $37.845 billion in net August 2022 inflows, down M/M from $45.732 billion and down Y/Y from $77.739 billion.

As of August 31, long-term funds and ETFs have suffered $121.156 billion in net 2022 outflows. That's equivalent to 0.52 percent of their combined AUM. 

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