British investment fund sales staged a recovery in the first quarter of 2009 following a tough environment last year, according to Lipper.
The quarterly fund flows from Lipper FMI show that as at the end of March, net fund flows have surged to their highest quarterly level for three years. This more positive data results from a significant reduction in redemptions by both retail and institutional investors, the group says.
The uptick in gross sales was a result of investors’ search for yield, with bond funds still popular. Managers’ net sales of bond funds in the first quarter were more than double the level for the whole of 2008, the report says.
M&G is one group continuing to benefit from this trend, reporting record quarterly sales of gross £2.49 billion and net £1.97 billion. Invesco Perpetual’s equity income offerings also continued to dominate. Elsewhere, BlackRock Gold & General did well as investors sought refuge in gold, while the group’s UK Absolute Alpha saw continued inflows.
Threadneedle also saw a revival in the first quarter, featuring among the top ten for its net retail sales, especially its Absolute Return Bond product. Meanwhile, First State has been the greatest beneficiary of inflows into the Asia Pacific region, with almost £200m of net retail sales.