A New York City boutique took the lead last month, 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.

Clayton Hale DeGiacinto Axonic Capital LLC Founder, Managing Partner, Chief Investment Officer

This article draws from Morningstar Direct data on October 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 497 firms (down from 498 in September 2023) with fewer than ten long-term mutual funds and ETFs each.

Axonic took the lead last month, thanks to an estimated $184 million in net October 2023 inflows, up month-over-month from $72 million in September 2023 and up year-over-year from $2 million in net outflows in October 2022. Other big October 2023 inflows winners included: Edgewood, $164 million (up M/M from $107 million in net outflows, up Y/Y from $426 million in net outflows); Alpha Architect, $122 million (up M/M from $91 million, up Y/Y from $62 million); PFM, $94 million (up M/M from $29 million, up Y/Y from $2 million); and Holbrook, $84 million (up M/M from $78 million, up Y/Y from $25 million).

Alpha Architect took the 2023 inflows lead last month, thanks to an estimated $990 million in net year-to-date inflows as of October 31. Other big YTD inflows winners included: Performance Trust Asset Management (PTAM), $859 million; and Seafarer, $744 million.

On the flip side, Akre took the outflows lead last month, thanks to an estimated $478 million in net October 2023 outflows, up M/M from $103 million in September 2023 and up Y/Y from $236 million in October 2022. Other big October 2023 outflows sufferers included: Primecap, $180 million (up M/M from $167 million, down Y/Y from $374 million); Aspiriant, $109 million (down M/M from negligible inflows, down Y/Y from $118 million in net inflows); Ark, $107 million (down M/M from $470 million, down Y/Y from $140 million); and Vulcan Value Partners, $92 million (up M/M from $38 million, down Y/Y from $134 million).

Primecap still leads the 2023 small firm outflows pack so far, thanks to an estimated $1.955 billion in net YTD outflows as of October 31. Other big outflows sufferers included: Akre, $1.657 billion; and Edgewood, $1.518 billion.

As a group, small fund firms suffered $1.086 billion in net October 2023 outflows, ending the month with $242 billion in AUM across 1,507 funds, with 170 firms bringing in net inflows, and accounting for 1.03 percent of industry long-term fund AUM, 3.55 percent of industry funds, and 2.21 percent of industry outflows. That compares with $741 million in net outflows, $250 billion in AUM, 1,490 funds, 176 firms with net inflows, 1.03 percent of industry AUM, 3.53 percent of industry funds, and 6.05 percent of industry outflows in September 2023.

Across the industry, the 779 firms tracked by the M* team (down M/M from 780 and down Y/Y from 787) suffered an estimated $49.245 billion in net October 2023 outflows, ending the month with $23.571 trillion in AUM across 42,413 funds. That compares with $12.246 billion in net outflows, $24.155 trillion in AUM, and 42,226 funds in September 2023, and with $21.911 billion in net outflows and $22.554 trillion in AUM in October 2022.

Over the first ten months of 2023, fund firms suffered $8.191 billion in net outflows. 

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