A Philadelphia area asset manager led the way last year among the smallest fund firms, according to the latest data from folks at a publicly traded investment research firm.

Wesley Gray Alpha Architect CEO, Chief Investment Officer

This article draws from Morningstar Direct data on December 2023 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 495 firms (down month-over-month from 497 in November 2023) with fewer than ten long-term mutual funds and ETFs each.

Alpha Architect led the small fund firm pack last year, thanks to an estimated $1.129 billion in 2023 inflows, up year-over-year from $351 million in 2022. Other big 2023 inflows winners included: Performance Trust Asset Management, $1.031 billion (up Y/Y from $1.191 billion in net outflows); Seafarer, $1.013 billion (up Y/Y from $222 million); Axonic, $629 million (up Y/Y from $37 million in net outflows); and Neos, $556 million (up Y/Y from $2 million).

Ark won the race last quarter, thanks to an estimated $323 million in net inflows in the fourth quarter of 2023. Other big Q4 2023 inflows winners included: Seafarer, $321 million; and Alpha Architect, $262 million.

Ark also took the lead last month, thanks to an estimated $363 million in net December 2023 inflows. Other big inflows winners included: Performance Trust Asset Management, $289 million; and Seafarer, $216 million.

On the flipside, Primecap led the small firm outflows pack last year, thanks to an estimated $2.834 billion in net 2023 outflows, down Y/Y from $4.568 billion in 2022. Other big 2023 outflows sufferers included: Akre, $2.271 billion (up Y/Y from $1.967 billion); Edgewood, $1.797 billion (down Y/Y from $4.706 billion); Champlain, $919 million (up Y/Y from $728 million); and Blackstone, $842 million (up M/M from $528 million).

Akre took the lead last quarter, thanks to an estimated $1.092 billion in net Q4 2023 outflows. Other big outflows sufferers included: Primecap, $1.058 billion; and Aperture, $568 million.

Primecap led the outflows pack for a second month running, thanks to an estimated $572 million in net December 2023 outflows. Other big outflows sufferers included: Aperture, $565 million; and Akre, $350 million.

As a group, small fund firms suffered $7.914 billion in net 2023 outflows, though 232 firms netted inflows for the year. Small firms ended 2023 with $270 billion in combined AUM across 1,479 funds. They accounted for one percent of industry long-term fund AUM and 3.5 percent of industry funds.

In Q4 2023, small fund firms suffered $4.093 billion in net outflows. 213 of those firms netted inflows.

In December 2023, small fund firms suffered $1.752 billion in net outflows. 196 of those firms brought in net inflows.

Across the industry, the 782 firms tracked by the M* team (down Y/Y from 788) brought in an estimated $82.506 billion in 2023 inflows, ending the year with $26.527 trillion in AUM across 42,423 funds. That compares with $361.242 billion in net 2022 outflows and $22.731 trillion in AUM across 42,192 funds.

In Q4 2023, the industry brought in $41.325 billion in net inflows. 293 firms brought in net Q4 inflows.

And in December 2023, the industry brought in $57.098 billion in net inflows. 294 firms brought in net December 2023 inflows. 

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