A Bay Area startup kept the lead last month among small fund firms.

Leland Carroll Clemons BondBloxx Investment Management Corporation CEO, Founder

This article draws from Morningstar Direct data for May 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 158 firms (down month-over-month from 159 in April 2023 and down year-over-year from 167 in May 2022) with between $1 billion and $10 billion each in long-term fund AUM.

Small firms had $487 billion in total long-term fund AUM across 3,963 funds as of May 31, 2023, accounting for 2.04 percent of overall industry long-term fund AUM. That compares with $495 billion, 3,962 funds, and 2.05 percent of industry AUM on April 30, 2023, and with $510 billion and 2.08 percent of industry AUM on May 31, 2022.

51 of those small fund firms brought in net inflows in May 2023. That's down M/M from 61 in April 2023 but up Y/Y from 44 in May 2022.

BondBloxx led the pack for a second month in a row, thanks to an estimated $476 million in net May 2023 inflows, up M/M from $308 million in April 2023 and up Y/Y from $2 million in May 2022. Other big May 2023 inflows winners included: Stone Ridge, $268 million (up M/M from $140 million in net outflows, up Y/Y from $19 million in net inflows); North Slope, $246 million (down M/M from $255 million); USCF, $167 million (up M/M from $184 million in net outflows, up Y/Y from $263 million in net outflows); and Performance Trust, $138 million (up M/M from $91 million, up Y/Y from $196 million in net outflows).

BondBloxx also led the pack again proportionately last month, thanks to estimated net May 2023 inflows equivalent to 31.5 percent of its AUM. Other big inflows winners included: North Slope, 15.6 percent; and Stone Ridge, 10.7 percent.

So far in 2023, North Slope still leads the way, thanks to an estimated $1.151 billion in net year-to-date inflows as of May 31. Other big YTD inflows winners include: BondBloxx, $1.122 billion; and USCF, $836 million.

On the flip side, KraneShares took the outflows lead last month, thanks to an estimated $388 million in net May 2023 outflows, up M/M from $160 million in April 2023 but down Y/Y from $298 million in net May 2022 inflows. Other big May 2023 outflows sufferers included: Barclays, $197 million (down M/M from $36 million in net inflows, down Y/Y from $207 million in net outflows); Champlain, $188 million (down M/M from $6 million in net inflows, up Y/Y from $68 million in net outflows); Envestnet's PMC, $159 million (up M/M from $4 million, up Y/Y from $5 million); and Polen Capital, $145 million (up M/M from $78 million, down Y/Y from $238 million).

PMC took the outflows lead proportionately last month, thanks to estimated net May 2023 outflows equivalent to 13.1 percent of its AUM. Other big outflows sufferers included: Barclays, 11.9 percent; and Advisors Preferred, 7.2 percent.

KraneShares now leads the 2023 outflows pack so far, thanks to an estimated $1.214 billion in net YTD outflows as of May 31. Other big outflows sufferers included: Credit Suisse, $1.116 billion; and UBS, $776 million.

As a group, small fund firms suffered $1.737 billion in net May 2023 outflows, equivalent to 0.36 percent of their combined AUM and accounting for 7.56 percent of overall industry long-term fund outflows. That compares with $1.706 billion and 0.34 percent of AUM in April 2023, and with $5.871 billion, 1.15 percent of AUM, and 15.01 percent of industry outflows in May 2022.

As of May 31, small firms have suffered an estimated $2.645 billion in net 2023 outflows. That's equivalent to 0.54 percent of their combined AUM.

Across the industry, the 780 firms tracked by the M* team (up M/M from 776, down Y/Y from 787) suffered $22.969 billion in net outflows in May 2023, equivalent to 0.1 percent of their combined $23.9 trillion in AUM across their 41,597 funds. That compares with $6.565 billion in net inflows, 0.03 percent of AUM, and 42,060 funds in April 2023, and with $39.103 billion in net outflows and 0.16 percent of AUM in May 2022.

Active funds suffered an estimated $44.016 billion in net outflows in May 2023, up M/M from $30.68 billion but down Y/Y from $109.837 billion. On the flip side, passive funds brought in $21.046 billion in net May 2023 inflows, down M/M from $37.244 billion in April 2023 and down Y/Y from $$70.729 billion in net inflows in May 2022.

So far in 2023, the industry has suffered $193 million in net outflows as of May 31. That's equivalent to 0.0008 percent of overall industry AUM. 

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