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Wednesday, September 18, 2019|
Mid-Size Firms Suffer 72 Percent of MF Outflows
Mid-size fund firms' outflows dominated last month as mutual fund flows for the industry swung negative.
Morgan Stanley kept the lead last month among mid-size fund firms, with estimated net August inflows of $827 million, yet those inflows still fell 39.9 percent from $1.451 billion in July. Other big August winners included: AllianceBernstein, $523 million (down from $557 million); Baird, $498 million (down from $1.439 billion); Edward Jones' Bridge Builder, $420 million (down from $598 million); and Rafferty's Direxion, $362 million (up from $566 million in net outflows).
Proportionately, Direxion took the mid-size pack lead, with estimated net August inflows equivalent to 2.69 percent of its AUM, up from 4.28 percent in net outflows in July. Other big August winners included: Brown Advisory, 1.98 percent (up from 1.87 percent); UBS, 1.9 percent (up from 2.7 percent in net outflows); Akre, 1.68 percent (up from 1.02 percent); and Morgan Stanley, 1.67 percent (down from 2.79 percent).
On the flip side, August was another rough month for Harris' Oakmark, which suffered an estimated $1.478 billion in net outflows, again more than any other mid-size fund firm and up from $1.206 billion in July. Other big August sufferers included: WisdomTree, $1.142 billion (up from $117 million); DWS, $1.116 billion (up from $170 million); AQR, $920 million (up from $491 million); and Waddell & Reed's Ivy, $911 million (up from $835 million).
Proportionately, AQR led the mid-size outflows pack last month, suffering estimated net August outflows equivalent to 3.98 percent of its AUM, up from 2.05 percent in July. Other big August sufferers included: WisdomTree, 3.13 percent (up from 0.3 percent); AIG, 2.96 percent (up from 2.57 percent); Matthews Asia, 2.62 percent (up from 2.3 percent); and Glenmede, 2.4 percent (up from 1.47 percent).
As a group, the 75 mid-size fund firms suffered an estimated $11.522 billion in combined net August outflows, equivalent to about 0.43 percent of their combined AUM. That's up from $2.342 billion in net July outflows. Put another way, in August mid-size fund firms accounted for 72.34 percent of net industry outflows.
Across the whole industry (M* tracks flows from 767 firms, down from 771 in July), long-term mutual funds and ETFs suffered a combined $15.927 billion in net outflows in August, equivalent to about 0.08 percent of industry AUM. That's down from $26.698 billion in net July inflows. Passive funds suffered $4.7 billion in net August outflows, while active funds suffered $11.227 billion in net outflows.
Editor's Note: Calculations for this story overlooked one of the 75 mid-size fund firms tracked in Morningstar Direct's data. After adding that firm's numbers into the calculations, the overall figures above have been updated accordingly.
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