Fund managers generated record net inflows in 2009, driven by strong investor demand for emerging markets.
First State recorded net inflows of £1.5bn in 2009, up from £530m the previous year and £260m in 2007.
Almost £700m was invested during Q2 2009, as the markets rebounded from March’s low. It takes funds under management for its Oeic range to £7bn.
Head of wholesale UK and Europe Graham Fox says the Asia Pacific and Global Emerging Markets mandates saw the biggest inflows.
“Our Asia Pacific and emerging markets funds definitely took the bulk of sales,” he says.
“We were a bit surprised at the volume of new money last year. However, in 2008 people took money out of a lot of asset classes, so they were sitting on a lot of cash as the markets turned
in March.
“However, we did see positive flows across the whole range of funds, including property, resources and listed infrastructure.
“Sales levels have normalised this year and we are starting to see a degree of profittaking in emerging markets.
“Investors who have been in there a long time and got in early, are now taking some money out,” he adds.
Meanwhile, Allianz Global Investors’ UK range has breached £2bn assets under management for first time, on the back of record net inflows of £300m in 2009.
Two thirds went into equity, the majority into its £700m BRIC Stars mandate run by Michael Konstantinov. The other third went into the group’s fixed income funds.
The group also recorded inflows of £300m into its offshore funds from UK accounts. The £600m net inflows from UK investors last year was split 50/50 between equities and fixed income.
IMA statistics show Global Emerging Markets returned 57.8% in 2009, more than any other sector.
The sector is also the best performing over five and 10 years at 137.1% and 146% respectively to 31 December 2009.
Asia Pacific ex Japan is the second strongest performer over one, five and 10 years, returning 52.5%, 116.7% and 109.4%.
