Fidelity's net retail sales reached just £7m in the third quarter, placing it outside the top 10 biggest retail sellers for the first time in almost five years, according to a confidential report.
The giant fund firm achieved retail sales of £363m but redemptions hit £356m, leaving it trailing behind rivals such as Threadneedle and Schroders, which had net sales of £123m and £121m respectively. Even boutique Liontrust, currently enjoying strong inflows into its first income fund, saw net retail sales of £116m.
As Fidelity's redemptions have stayed at roughly the same level for some time, industry watchers believe the problem is increased competition rather than multi-managers pulling out large chunks of money.
Fidelity also lacks an equity income fund, which is a top seller for most groups with funds in the sector, and has made several manager changes, notably with its American and European funds.
It did see major inflows into its top-performing special situations fund, which took £180m, but, as this accounts for almost half its retail sales, observers believe investors have begun looking to rivals in most other areas.
Credit Suisse Asset Management multi-manager co-head Gary Potter says: “It is not so much the redemption effect, I think this is more a result of investors at the margin looking elsewhere for funds which are often more competitive.”
Fidelity says it will not comment on proprietary information.