Fundsmith’s net retail sales continued to outpace those of rival asset managers in the third quarter, according to the latest Pridham Report, as investors began to cautiously edge back into funds.
The latest report showed that Fundsmith once more ranked top for net retail sales, racking up some £838m, with the likes of Fidelity and Aviva Investors also faring well.
This marked a high point for Fidelity, which saw net quarterly sales reach their highest level for more than a decade because of a boost for fixed income propositions, as well as strong sales for its equity offerings.
The latest report may come as welcome reading for asset managers, who suffered a "bleak" second quarter.
Helen Pridham, editor of the report, noted that though net withdrawals had occurred in July following the Brexit vote, they had been offset by positive sales in August and September. She said investors were “proceeding with caution”, favouring the likes of bond and absolute return funds.
| Asset Manager Q3 net retail sales | |
| £m | |
| Fundsmith | 838 |
| Fidelity | 722 |
| Aviva Investors | 455 |
| LGIM | 415 |
| HSBC Gam | 404 |
| JPMAM | 357 |
| BNY Mellon | 328 |
| RLAM | 310 |
| Investec | 258 |
| Rathbones | 255 |
"Absolute return funds and fixed income funds are likely to remain in demand, although there are also signs that some investors are reassessing and broadening their equity exposure,” she added.
A sense of caution was also evident in the Investment Association’s latest monthly fund sale statistics.
Ms Pridham also noted that investors had been reconsidering and diversifying their holdings – defying fears that sales had concentrated in a small number of funds.
