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Changing of the guard

The latest Morningstar flows data reveals the extent to which a changing of the guard is happening in the investment management universe, with Abrdn having its best month in terms of flows in more than a year while Baillie Gifford had its worst month for a decade.

In Abrdn's case, the guys and gals from Bread Street had a net inflow of £752m, which brings the total net flows in 2022 to £1.6bn.

In contrast a further £1.9bn fled Baillie Gifford during the month, taking their net total to £8.9bn this year. 

The funds paying the bills for Abrdn are a pair of trackers, one of which is Abrdn American Equity, which brought in £360m in October, with that money making most of the £414m net inflows that have come into the mandate this year to date.

The fund is not held in the portfolios of any of the DFMs we cover. 

The second Abrdn tracker driving flows is Abrdn Asia Pacific ex-Japan. This had net inflows of £261m during the month, and £306m during the year. 

Three of the five funds with the highest inflows in 2022 are trackers and one is a money market fund.

This leaves the HSBC Corporate Bond fund as the only active mandate getting material inflows. 

The fund attracted net inflows of £210m in October, and £180m year to date. It is £41m in size. 

The aforementioned money market fund is Royal London Short Term Money Market which is the fund, across all asset classes, with the greatest level of net inflows in 2022.

It took in £383m of new money in October, and has had net inflows of £1.8bn this year to date. This is the most widely-owned money market fund among the allocators we cover, appearing in six portfolios, and with two new buyers this year.

The Baillie Gifford funds which have been central to the outflows are its Diversified Growth fund which has lost around £2.4bn this year, and £452m in October. This is the fund with the largest outflows across all sectors in 2022. 

The fund with the next highest outflows this year to date is Schroders Diversified Growth, which has shed £1.4bn, including £430m in the past month. That fund is £2.5bn in size.

Unsurprisingly none of the outflows from either fund came from any of the allocators on our database as neither fund is held by any of the DFMs we cover. 

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