Editor's Note: This month, MFWire is changing up how we categorize fund firms when looking at their fund flows. We're now dividing up firms by the number of funds they offer, instead of by AUM.

Sean Michael-Thomas Dranfield PT Asset Management, LLC CEO

A Midwestern fixed income boutique leads the way so far in 2023, at least when it comes to inflows into the smallest fund firms, according to the latest data from the folks at a publicly traded investment research firm.

This article draws from Morningstar Direct data on September 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 498 firms with fewer than ten long-term mutual funds and ETFs each.

Performance Trust Asset Management (PTAM) leads the small fund firm inflows pack so far in 2023, thanks to an estimated $887 million in net year-to-date inflows as of September 30. Other big YTD inflows winners included: Alpha Architect, $868 milion; Seafarer, $693 million; Axonic, $383 million; and Saturna's Amana, $370 million.

Seafarer led the way last quarter, thanks to an estimated $314 million in net inflows in the third quarter of 2023. Other big Q3 2023 inflows winners included: Alpha Architect, $306 million; and Bushido, $244 million.

Bushido took the lead last month, thanks to an estimated $244 million in net September 2023 inflows. Other big inflows winners included: Alpha Architect, $91 million (down month-over-month from $116 million in August 2023, up year-over-year from $19 million in September 2022); and Holbrook, $78 million (up M/M from $57 million, up Y/Y from $51 million).

Apparent mutual fund industry newcomers last month included: Bushido, MarketDesk, and Pabrai.

On the flip side, Primecap leads the 2023 small firm outflows pack so far, thanks to an estimated $1.775 billion in net YTD outflows as of September 30. Other big outflows sufferers included: Edgewood, $1.682 billion; Akre, $1.179 billion; Ark, $1.147 billion; and Champlain, $622 million.

Edgewood led the outflows pack last quarter, thanks to an estimated $718 million in net Q3 2023 outflows. Other big outflows sufferers included: Primecap, $495 million; and Ark, $423 million.

Ark led the way last month, thanks to an estimated $470 million in net September 2023 outflows, up M/M from $333 million in August 2023 but down Y/Y from $322 million in net inflows in September 2022. Other big September 2023 outflows sufferers included: Primecap, $167 million (up M/M from $120 million, down Y/Y from $208 million); and Ruane Cunniff & Goldfarb's Sequoia, $120 million (up M/M from $48 million, up Y/Y from $18 million).

As a group, small fund firms suffered $741 million in net September 2023 outflows, ending the month with $250 billion in AUM across 1,490 funds. (176 of those firms brought in September inflows.) Small firms accounted for 1.03 percent of industry long-term fund AUM, 3.53 of industry funds, and 6.05 percent of industry outflows.

Small firms suffered $1.287 billion in net Q3 outflows. 317 small firms brought in net inflows.

Over the first nine months of 2023, small firms suffered a combined $3.841 billion in net outflows. 239 small firms have suffered 2023 outflows so far.

Across the industry, the 780 firms tracked by the M* team (down M/M from 780 and down Y/Y from 781) suffered an estimated $12.246 billion in net September 2023 outflows, and ended the month with $24.155 trillion in AUM across 42,269 funds. That compares with $24.468 billion in net outflows across $25.211 trillion in AUM and 42,226 funds in August 2023, and with $76.784 billion in net outflows across $21.521 trillion in AUM in September 2022.

Active funds suffered $41.556 billion in net September 2023 outflows, up M/M from $34.337 billion in August 2023 but down Y/Y from $97.389 billion in September 2022. Passive funds brought in $29.31 billion in net September 2023 inflows, up M/M from $9.869 billion and up Y/Y from $20.732 billion.

In Q3 2023, long-term funds and ETFs suffered an estimated $3.838 billion in net outflows. And over the first nine months of 2023, they brought in $35.883 billion in net inflows. 

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