M&G tops retail sales for seventh straight quarter

M&G topped UK retail fund sales for the seventh consecutive quarter in Q2, taking in more than 20% of the industry’s total net sales of £5.2bn.

The group, which recorded a £1.05bn net retail inflow over the quarter, attributes its market-leading inflows to the “depth and breadth” of its fund offering, with at least seven vehicles taking in more than £50m net over the three- month period.

M&G increased its market share from the previous quarter, after attracting 17% of the industry’s £5.5bn net retail inflow in Q1, according to Lipper statistics.

“We are quite fortunate to have a stable of funds able to attract investors in all weathers and at all stages of the cycle,” M&G global head of sales Jonathan Willcocks says.

“Our fixed income capabilities are well known, but we also have the Recovery and Global Basics funds, which are leaders in their sectors.

“We are also seeing strong flows into our Global Dividend fund, as investors increasingly recognise the merits of not solely relying on the UK for income.”

Lipper says sales of the Recovery and other M&G equity funds compensated for outflows from the group’s Corporate Bond fund during Q2.

However, Willcocks reveals Richard Woolnough’s giant £4bn vehicle is once again seeing strong inflows.

“From the end of Q2 we have actually seen substantial flows come into the Corporate Bond fund,” Willcocks says.

“The flows are coming from the asset allocators rather than retail. However, the economic environment is leading to renewed interest in the product. It is not surprising, with credit spreads widening back to pre-Lehman levels.”