Invesco Perpetual has retaken the top spot as the UK’s biggest retail fund manager after strong January sales saw it overtake M&G, according to IMA statistics.
M&G ended Invesco’s dominance of the retail market in April 2012 when it overtook the Henley-on-Thames company in terms of retail assets under management. This was chiefly driven by huge inflows into star bond fund manager Richard Woolnough’s three fixed income products.
But Invesco Perpetual’s retail assets under management hit £42.4bn at the end of January, up by 4 per cent from £40.8bn at the end of December 2012. Meanwhile M&G’s retail assets grew 1.5 per cent in the same period to reach £41.8bn at the end of January.
It coincides with changing fortunes in both firms’ market-leading fixed income ranges.
Mr Woolnough has seen several major multi-managers sell out of holdings in his M&G Corporate Bond and M&G Strategic Corporate Bond funds in recent weeks as their performance declined in the second half of 2012. According to FE Analytics estimates the funds have seen roughly £500m in outflows in the three months to the end of January, excluding performance.
In contrast Invesco Perpetual’s Paul Causer and Paul Read have begun to take profits from major holdings in bank debt in their Corporate Bond and Tactical Bond funds as these positions have driven the funds’ outperformance in the short term.
Invesco Perpetual was also aided by inflows into its £2.1bn Distribution fund, run by Mr Causer, Mr Read and Neil Woodford.
