Inflows into passive funds shrunk by 82.6 percent last month, even as outflows from active funds grew by 40.7 percent, according to the latest data from the folks at a publicly traded investment research company.

This article draws from Morningstar Direct data on August 2023 open-end mutual fund and ETF flows, excluding money-market funds and funds of funds. The data also excludes other asset management products, like CITs and SMAs.

J.P. Morgan (including Six Circles) led the active inflows pack for a fourth month running, thanks to an estimated $2.296 billion in net August 2023 active inflows, up month-over-month from $1.952 billion in July 2023 but down year-over-year from $3.751 billion in August 2022. Other big August 2023 active inflows winners included: Prudential's PGIM, $1.878 billion (up M/M from $137 million, up Y/Y from $1.349 billion in net outflows); Allianz's Pimco, $1.473 billion (up M/M from $717 million, up Y/Y from $1.289 billion in net outflows); Edward Jones' Bridge Builder, $597 million (up M/M from $595 million, up Y/Y from $408 million); and Baird (including Strategas), $569 million (down M/M from $1.502 billion, down Y/Y from $1.25 billion).

Vanguard took the lead on the passive side last month, thanks to an estimated $11.055 billion in net August 2023 passive inflows, down M/M from $16.78 billion in July 2023 and down Y/Y from $19.914 billion in August 2022. Other big August 2023 passive inflows winners included: Fidelity, $8.494 billion (up M/M from $8.363 billion, up Y/Y from $1.436 billion); Schwab, $2.082 billion (up M/M from $632 million, down Y/Y from $2.924 billion); WisdomTree, $1.413 billion (up M/M from $899 million, up Y/Y from $768 million); and Rafferty's Direxion, $1.214 billion (up M/M from $89 million in net outflows, up Y/Y from $502 million in net inflows).

On the flip side, last month was a rough one for Capital Group (home of American Funds), which took the active outflows lead thanks to an estimated $6.672 billion in net August 2023 active outflows, up M/M from $2.892 billion in July 2023 and up Y/Y from $1.616 billion in August 2022. Other big August 2023 active outflows sufferers included: Vanguard, $6.299 billion (up M/M from $4.888 billion, up Y/Y from $2.42 billion); BlackRock (including iShares), $3.345 billion (up M/M from $2.433 billion, up Y/Y from $2.73 billion); Franklin Templeton (including Royce), $3.261 billion (up M/M from $1.965 billion, down Y/Y from $4.311 billion); and T. Rowe Price, $3.016 billion (down M/M from $5.106 billion, down Y/Y from $4.465 billion).

SSGA took the outflows lead last month among passive fund firms, thanks to an estimated $12.194 billion in net August 2023 passive outflows, down M/M from $2.385 billion in July 2023 inflows and down Y/Y from $3.661 billion in August 2022 inflows. Other big August 2023 passive outflows sufferers included: BlackRock, $3.314 billion (down M/M from $19.517 billion in net inflows, down Y/Y from $6.397 billion in net inflows); ProShares and ProFunds, $610 million (down M/M from $1.113 billion, down Y/Y from $1.439 billion in net inflows); Jackson, $304 million (up M/M from $135 million, down Y/Y from $53 million in net inflows); and DWS (including Xtrackers), $279 million (down M/M from $13 million in net inflows, down Y/Y from $424 million in net outflows).

Overall, the 714 active fund firms tracked by the M* team (up M/M from 713, down Y/Y from 729) suffered an estimated $34.337 billion in net active outflows in August 2023, up M/M from $24.413 billion and up Y/Y from $30.062 billion. 38.9 percent of those firms (278) brought in net active inflows last month, up M/M from 38.6 percent but down Y/Y from 42.8 percent.

The 146 passive firms tracked by the M* team (up M/M from 145, down Y/Y from 158) brought in an estimated $9.869 billion in net August 2023 passive inflows, down M/M from $56.803 billion and down Y/Y from $37.845 billion. 45.9 percent of those firms (67) gained net passive inflows last month, up M/M from 44.1 percent but down Y/Y from 46.8 percent. 

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