Multi-manager funds boost group sales in Q1

Multi-manager funds proved popular among investors in the first quarter of 2011, with groups including Jupiter and Henderson all seeing a rise in sales thanks to their funds of funds, according to the latest Pridham report.

Overall, the report found investors turned more cautious throughout the period and groups such as M&G and BlackRock reported higher redemptions and falls in net retail sales.

The report said multi-manager ranges at Jupiter, Santander and Henderson were popular, however, and led to these firms increasing net sales.

Merlin Income attracted inflows at Jupiter, while the risk-rated funds recently taken over by Tom Caddick at Santander led to the group appearing in the net sales top 10 after a ‘long absence'. Meanwhile Henderson's multi-manager range and bond funds improved sales.

M&G had the highest net retail sales for the first three months of the year despite the final figure being lower than sales reported in 2010's Q4. Net retail sales were £847.7m for the group with M&G Recovery the best selling fund in its range.

The Pridham report also revealed companies with more cautious offerings fared well. Standard Life Investments saw its gross retail sales rise by 20% and its net retail sales increase 8% in Q1 with its GARS funds being the main beneficiaries.

Top 10 managers by net retail sales in Q1 2011

1. M&G £847.7m
2. BlackRock £683.4m
3. Standard Life Investments £633m
4. Jupiter £485.9m
5. Santander £410.8m
6. SWIP £342.7m
7. Neptune £338.2m
8. AXA £335m
9. BNY Mellon £300m
10. Henderson £272.6m