Among the smallest fund firms, a Florida startup led the inflows past for a second month in a row in August.
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. (Other asset management products, like CITs and SMAs, are also not included.) More specifically, this article focuses on the 518 firms (up month-over-month from 512 in July 2023
and up year-over-year from 515 in August 2022
) with less than $1 billion each in long-term fund AUM.
Micro fund firms had $102 billion in total long-term AUM across 2,862 funds and accounted for 0.4 percent of overall industry long-term fund AUM as of August 31, 2023. That compares with $100 billion, 2,716 funds, and 0.38 percent of industry AUM on July 31, 2023, and with $96 billion, 515 funds, and 0.41 percent of industry AUM on August 31, 2022.
197 of those micro fund firms brought in net inflows in August 2023. That's up M/M from 189 in July 2023 but down Y/Y from 233 in August 2023.
ZEGA's YieldMax ETFs
led the micro firm inflows pack again last month, thanks to an estimated $424 million in net August 2023 inflows, up M/M from $303 million in July. Other big August 2023 inflows winners included: Strive
, $103 million (up M/M from $27 million, down Y/Y from $313 million in July 2023); Neos
, $70 million (down M/M from $88 million, up Y/Y from $1 million); Rockefeller
, $60 million (up M/M from $4 million in net outflows, up Y/Y from $155 million in net outflows); and Astoria Capital Partners
, $58 million.
Last month, there were at least three apparent mutual fund industry newcomwers: Astoria; Laffler Tengler
; and Validus
YieldMax also continues to lead the 2023 inflows pack so far, thanks to an estimated $934 million in net year-to-date inflows as of August 31, 2023. Other big YTD inflows winners included: Strive, $433 million; and Ambrus
, $317 million.
On the flip side, Corbyn's Greenspring
took the outflows lead last month, thanks to an estimated $112 million in net August 2023 outflows, down M/M from $4 million in July 2023 inflows and down Y/Y from $5 million in August 2022 inflows. Other big August 2023 outflows sufferers included: Horizon Kinetics
, $81 million (up M/M from $59 million, up Y/Y from $42 million); Highland
, $79 million (down M/M from $91 million, down Y/Y from $53 million in net inflows); Jackson Square
, $63 million (up M/M from $19 million, up Y/Y from $25 million); and FS' Chiron
, $37 million (down M/M from $59 million, down Y/Y from $16 million).
Highland took the 2023 outflows lead, thanks to an estimated $549 million in net YTD outflows as of August 31. Other big outflows sufferers included: Horizon Kinetics, $306 million; and Frontier
, $276 million.
In August 2023, micro fund firms brought in an estimated $427 million in net long-term inflows, equivalent to 0.42 percent of their combined AUM. That compares with $376 million and 0.38 percent in July 2023, and with $700 million and 0.73 percent in August 2022.
As a group, micro fund firms brought in an estimated $11 million in net inflows over the first eight months of 2023. That's equivalent to 0.01 percent of their combined AUM and accounts for 0.02 percent of overall industry inflows.
Across the entire industry, the 780 firms tracked by the M* team (up M/M from 779, down Y/Y from 784) suffered $24.468 billion in net August 2023 outflows, equivalent to 0.1 percent of their combined $25.211 trillion in AUM across 42,226 funds. That compares with $32.39 billion in net inflows, 0.13 percent of AUM, $25.75 trillion in AUM, and 42,167 funds in July 2023, and with $4.816 billion in net inflows, 0.02 percent of AUM, and $23.433 trillion in AUM in August 2022.
Active funds suffered an estimated $34.337 billion in net August 2023 outflows, up M/M from $24.413 billion and up Y/Y from $33.062 billion. On the flip side, passive funds brought in $9.869 billion in net August 2023 inflows, down M/M from $56.803 billion and down Y/Y from $37.845 billion.
As of August 31, the industry has brought in $48.162 billion in net 2023 inflows. That's equivalent to 0.19 percent of its total long-term fund AUM.
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