AUM and inflows rebounded last month, for the industry and for the titans.
| Mortimer J. "Tim" Buckley|
This article draws from Morningstar Direct
data for January 2023 mutual fund and ETF flows, excluding money-market funds and funds of funds. (Other asset management products, like collective trusts and SMAs, are also not included.***) More specifically, this article focuses on the eight firms (down year-overy-ear from nine in January 2022
) with more than $500 billion each in long-term fund AND ETF AUM.
Jumbo fund firms had $16.372 trillion in total long-term fund AUM across 7,775 funds as of January 31, 2023, and they accounted for 67.75 percent of overall industry long-term fund AUM. That compares with $15.429 trillion and 67.88 percent on December 31, 2022
) and with $18.223 trillion and 68.23 percent on January 31, 2022.
Five of those jumbo fund firms brought in net inflows in January 2023. That's up month-over-month from three in December 2022 and up year-over-year from four in January 2022.
took the lead last month, thanks to an estimated $17.497 billion in January 2023 inflows, up M/M from $2.399 billion in December 2022 and up Y/Y from $9.967 billion in January 2022. Other big January 2022 inflows winners included: J.P. Morgan
(including Six Circles), $10.734 billion (up M/M from $4.052 billion, up Y/Y from $1.994 billion); and BlackRock
(including iShares), $4.868 billion (down M/M from $8.477 billion, up Y/Y from $3.902 billion in net outflows).
On the flip side, T. Rowe Price
took the outflows lead last month, thanks to an estimated $6.018 billion, down M/M from $7.212 billion in December 2022 but up Y/Y from $4.403 billion in January 2022. Other big January 2023 outflows sufferers included: Invesco
, $2.641 billion (down M/M from $5.874 billion, down Y/Y from $3.305 billion); and Capital Group
(home of the American Funds), $2.61 billion (down M/M from $10.65 billion, down Y/Y from $3.726 billion in net inflows).
As a group, the eight largest fund firms brought in $26.226 billion in net January 2023 inflows, equivalent to 0.16 percent of their combined AUM and accounting for 61.45 percent of overall industry inflows. That compares with $11.598 billion in net outflows, 0.08 percent of AUM, and 13.51 percent of industry outflows in December 2022, and with $1.071 billion in net outflows and 0.01 percent of AUM in January 2022.
Across the entire industry, the 783 firms tracked by the M* team (down M/M from 788, down Y/Y from 797) brought in an estimated $42.682 billion in net January 2023 inflows, equivalent to 0.18 percent of overall long-term fund AUM of $24.165 trillion, across 42,338 funds. That's up M/M from $85.82 billion in net outflows and 0.38 percent of AUM in December 2022, and up Y/Y from $8.936 billion in net inflows and 0.03 percent of AUM in January 2022.
Passive funds brought in $47.436 billion in net long-term fund inflows in January 2023, up M/M from $35.056 billion in December 2022 and up Y/Y from $22.087 billion in January 2022. Yet active funds suffered $4.367 billion in net January 2023 outflows, down M/M from $121.317 billion and down Y/Y from $13.138 billion.
***This caveat is particularly important for jumbo fund firms, many of which are big players in the 401(k) business, where collective investment trusts (CITs) are a commonly used alternative to traditional mutual funds. For example, as the T. Rowe team revealed last week, in January 2023 their clients transferred about $1.1 billion out of T. Rowe mutual funds and into other T. Rowe products like CITs and SMAs. And T. Rowe is a big retirement plan provider and DC I-O asset manager, especially in the target-date fund (TDF) space.
Stay ahead of the news ... Sign up for our email alerts now