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Pridham Report: Fund sales ‘disappointing’ in RDR aftermath

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Fund inflows from retail investors were “disappointing” over the first quarter of the year although some asset managers were able to rack up healthy sales, according to the Pridham Report.

IMA figures show the first three months of 2013 saw net retail sales amount to £2.7bn, the lowest level for five years, while Isas were in net outflow. This came despite persistently low interest rates and a rising stockmarket – not to mention the Isa season.

Pridham Report editor Helen Pridham says: “Austerity and the squeeze on family budgets is clearly not helping matters but the RDR is undoubtedly a contributory factor to the decline in mass market investment, reflected by the lower levels of Isa investment.”

However, Pridham adds “it was not all doom and gloom” for the first quarter, as some asset management houses witnessed healthy sales over the three months.

Standard Life Investments benefited from the highest net retail sales, with just over half of the £917.3m inflows over the quarter going into its GARS absolute return fund.

BNY Mellon, which has featured in the Pridham Report’s top 10 for the past 11 quarters, was second for net retail sales at £658m, while Cazenove achieved its best quarter ever with funds such as Cazenove UK Opportunities and Cazenove Multi Manager Diversity helping it to take £498.1m.

In terms of gross retail sales, BlackRock knocked M&G off the top spot with sales of £2.3bn – one of its best ever quarters. BlackRock’s UK Special Situations and European Dynamic funds, as well as its mixed-asset, risk rated funds, proved popular over the quarter.

Top 10 managers by net retail sales in Q1 2013 (£m)

Top ten managers by net retail sales in Q1 2013 (£m)

1

Standard Life Inv

£917.3

2

BNY Mellon

£658.0

3

Cazenove

£498.1

4

BlackRock

£352.2

5

First State

£245.0

6

Old Mutual

£159.6

7

Skandia IM

£135.2

8

7IM

£115.6

9

Baillie Gifford

£115.3

10

Threadneedle

£106.6

Source: The Pridham Report

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