Seven out of the top 10 fund managers saw a rise in gross sales in the first quarter of the year, despite market uncertainty in February and March.
HSBC Asset Management saw the highest net retail sales in the three months to March this year, according to the latest Pridham Report.
The asset manager saw £1.2bn in net sales, followed by BlackRock with £984mn, and Legal & General Investment Management with £494mn.
BlackRock saw the highest gross sales in the quarter, seeing investments rise from £6.8bn in the final quarter of 2022 to £7.4bn in Q1 this year.
The report showed that seven of the top 10 managers saw increased gross sales in Q1 compared with the same period last year.
“Although overall levels of new business in the first quarter were not as high as in previous years, some fund groups fared better than others,” the report said.
Top 10 managers by net retail sales, Q1 2023
Manager | Net retail sales Q1 2023 | |
1 | HSBC AM | £1.2bn |
2 | BlackRock | £984mn |
3 | Legal & General IM | £494mn |
4 | M&G | £439mn |
5 | Royal London AM | £275mn |
6 | BNY Mellon | £267mn |
7 | Fidelity | £165mn |
8 | Alliance Bernstein | £162mn |
9 | Rathbones | £157mn |
10 | Man GLG | £107mn |
Source: Pridham Report
Data from the Investment Association showed that retail investors plugged £4bn into UK funds in the first quarter, reversing the trend of outflows seen in four previous quarters.
However, institutional investors pulled £17.7bn from funds, after investing £1.4bn in the fourth quarter of 2022.
Royal London Asset Management saw the highest gross sales of actively managed funds, which saw demand for its short-dated fixed income offering, and the Royal London UK Equity Income Fund was one of the company’s best sellers during the quarter.
M&G rose up the ranks into fourth place, with inflows into its equity funds and the majority of new business invested into its bond funds.
Anna Pridham, co-editor of The Pridham Report, said the outlook for fund flows for the rest of the year remains difficult to predict amid ongoing recessionary risks and high inflation.
“While some savers may prefer to leave their cash on deposit due to higher interest rates on offer, fund managers with the right products will continue to attract flows from those investors that are looking towards the longer term,” she said.
sally.hickey@ft.com
