A fixed income ETF startup led the inflows pack last month among the smallest fund firms.

Leland Carroll Clemons BondBloxx Investment Management Corporation CEO, Founder

This article draws from Morningstar Direct data on September 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 528 firms (up from 515 in August 2022 and from 498 in September 2021) with less than $1 billion each in long-term fund AUM.

Micro fund firms had $103 billion in total, long-term fund AUM as of September 30, 2022, accounting for 0.48 percent of overall industry long-term fund AUM. That compares with $96 billion and 0.41 percent on August 31, 2022, and with $95 billion and 0.36 percent on September 30, 2021.

216 of those micro fund firms brought in net inflows last month, down from 233 in August 2022 and 262 in September 2021.

BondBloxx took the lead last month, thanks to an estimated $192 million in net September 2022 inflows, up month-over-month from $8 million in net August 2022 outflows. Other September 2022 inflows winners included: Pzena, $106 million (up M/M from $10 million, up year-over-year from $14 million); Campbell & Company, $104 million (up M/M from $19 million, up Y/Y from $2 million); RBB, $98 million (up M/M from $78 million); and Hamlin, $91 million (up M/M from $1 million in net outflows, up Y/Y from $8 million in net inflows).

September 2022 featured at least six apparent mutual fund industry newcomers: Altrius, Ambrus Funds, Carbon Collective Funds, Emerge ETF Trust, Noble Funds, and THOR.

Strive Asset Management led the micro firm inflows pack in the third quarter of 2022, thanks to estimated net Q3 2022 inflows of $345 million. Other big inflows winners included: Kensington, $223 million; and Campbell, $210 million.

Teucrium still leads the 2022 micro firm inflows pack, thanks to an estimated $551 million in net year-to-date inflows as of September 30. Other big YTD inflows winners included: Kensington, $540 million; and Campbell, $521 million.

On the flip side, Frontier took the micro firm outflows lead last month, thanks to an estimated $302 million in net Spetmber 2022 outflows, up M/M from $65 million in August 2022, but down Y/Y from $3 million in net inflows in September 2021. Other big September 2022 outflows sufferers included: Callahan's Trust for Credit Unions, $227 million (up M/M from $57 million, up Y/Y from $9 million); AAAMCO, $122 million (down M/M from $218 million, up Y/Y from $35 million); Cambiar, $110 million (up M/M from $22 million, up Y/Y from $8 million); and River Canyon, $75 million (up M/M from $19 million, down Y/Y from $40 million in net inflows).

Trust for Credit Unions led the Q3 2022 outflows pack, thanks to an estimated $794 million in net outflows. Other big outflows sufferers included: Frontier, $491 million; and AAAMCO, $341 million.

Trust for Credit Unions also took the 2022 outflows lead, thanks to an estimated $3.313 billion in net YTD outflows as of September 30. Other big outflows sufferers this year include: Frontier, $1.676 billion; and Sempter, $778 million.

As a group, micro firms brought in an estimated $128 million in net September 2022 inflows, equivalent to 0.12 percent of their combined AUM. That compares with $700 million and 0.73 percent of AUM in August 20221, and with $810 million and 0.85 percent of AUM.

In Q3 2022, micro firms suffered an estimated $20 million in combined net outflows. That's equivalent to 0.02 percent of both their AUM and of industry long-term outflows.

Over the first nine months of 2022, micro firms suffered a combined $1.273 billion in net outflows. That's equivalent to 1.23 percent of their combined AUM and accounts for 0.64 percent of overall industry long-term outflows.

Across the entire industry, the 781 firms tracked by the M* team (down M/M from 784 but up Y/Y from 777) suffered an estimated $76.784 billion in net September 2022 outflows, equivalent to 0.36 percent of their combined $21.521 trillion in AUM. That's down M/M from $4.816 billion in net inflows and 0.02 percent AUM, and down Y/Y from $57.068 billion in net inflows and 0.22 percent of AUM.

Active funds suffered an estimated $97.389 billion in net September 2022 outflows, up M/M from $33.062 billion but down Y/Y from $9.916 billion in net inflows. Passive funds brought in $20.732 billion in net September 2022 inflows, down M/M from $37.485 billion and down Y/Y from $47.828 billion.

In Q3 2022, long-term funds and ETFs suffered an estimated $85.333 billion in net outflows. That's equivalent to 0.4 percent of their combined AUM.

And as of September 30, long-term funds and ETFs have suffered $197.566 billion in net 2022 outflows. That's equivalent to 0.92 percent of their combined AUM. 

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