A fixed income ETF shop led the way last quarter among the smallest fund firms.
| Leland Carroll Clemons|
BondBloxx Investment Management Corporation
This article draws from Morningstar Direct
data on March 2023 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 523 firms (up month-over-month from 518 in February 2023
and up year-over-year from 514 in March 2022
) with less than $1 billion each in long-term fund AUM.
Micro fund firms had $100 billion in total, long-term AUM across 2,836 funds as of March 31, 2023, accounting for 0.42 percent of overall industry long-term fund AUM. That compares with $99 billion, 2,753 funds, and 0.42 percent of industry AUM on February 28, 2023, and with $94 billion and 0.36 percent of industry AUM on March 31, 2022.
197 of those micro fund firms brought in net inflows in March 2023. That's down M/M from 236 in February 2023 and down Y/Y from 237 in March 2022.
led the micro firm pack last quarter, thanks to an estimated $338 million in net inflows in the first quarter of 2023. Other big Q1 2023 inflows winners included: Ambrus
, $158 million; Kovitz
, $154 million; Strive
, $150 million; and CrossingBridge
, $102 million.
BondBloxx also took the lead last month, thanks to an estimated $147 million in net March 2023 inflows, up M/M from $54 million in February 2023 and up Y/Y from no net flows in March 2022. Other big March 2023 inflows winners included: Perpetual
, $74 million (up M/M from $13 million in net outflows); and Vert
, $69 million (up M/M from $12 million, up Y/Y from $5 million).
On the flip side, Callahan's Trust for Credit Unions
led the outflows pack last quarter, thanks to an estimated $518 million in net Q1 2023 outflows. Other big Q1 2023 outflows sufferers included: AlphaCentric
, $129 million; Frontier
, $107 million; Liberty Street
, $91 million; and Toews
TCU also took the outflows lead last month, thanks to an estimated $410 million in net March 2023 outflows, up M/M from $55 million in February 2023 and up Y/Y from $355 million in March 2022. Other big March 2023 outflows sufferers included: Lyrical
, $93 million (down M/M and Y/Y from $7 million in net inflows); and Frontier, $75 million (up M/M from $14 million, down Y/Y from $481 million).
As a group, micro fund firms brought in $501 million in net inflows in Q1 2023. That's equivalent to 0.5 percent of their combined AUM.
Yet in March, micro fund firms suffered an estimated $451 million in net outflows, equivalent to 0.45 percent of their combined AUM and accounting for 1.77 percent of overall industry outflows. That compares with $638 million in net inflows and 0.65 percent of AUM in February 2023, and with $770 million in net inflows, 0.82 percent of AUM, and 2.51 percent of industry inflows in March 2022.
Across the entire industry, the 785 firms tracked by the M* team (up M/M from 782 but down Y/Y from 791) brought in an estimated $15.168 billion in net inflows in Q1 2023. That's equivalent to 0.06 percent of their combined $23.968 trillion in AUM (which is spread across 42,221 funds).
In March 2023, the industry overall suffered an estimated $25.527 billion in long-term fund outflows, equivalent to 0.11 percent of the industry's long-term AUM. That compares with $3.245 billion and 0.01 percent of AUM in February 2023, and with $30.653 billion in net inflows and 0.12 percent of AUM in March 2022.
Active funds suffered an estimated $58.306 billion in net outflows in March 2023, up M/M from $7.279 billion but down Y/Y from $70.411 billion. On the flip side, passive funds brought in $32.778 billion in March 2023 inflows, up M/M from $4.034 billion but down Y/Y from $101.064 billion.
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