Pridham Report: BlackRock takes back top spot as fund switches rife
Brexit uncertainty
BlackRock is back at the top of the net retail sales table in the latest Pridham Report on the back of positive net flows into its passive funds.
The asset manager saw net retail sales of £988m in Q1 2019, having failed to make the top ten in the previous Pridham Report, which covered Q4 2018.
Legal & General Investment Management (LGIM) was bumped down to second place for net retail sales in Q1, having been in pole position in Q4.
LGIM saw net retail sales of £729m, with mixed asset funds comprising over two thirds the flows.
Allianz Global Investors and T. Rowe Price also made it into the top ten for net retail sales, with strong performers Allianz Gilt Yield and Allianz Strategic Bond, both managed by Mike Riddell, boosting sales.
Pridham Report: Baillie Gifford continues 'winning streak' in Q3
Meanwhile T. Rowe Price's push into the UK market is paying off, with T Rowe Price Japanese Equity the firm's best seller.
However, overall Q1 proved challenging for fund groups in terms of net sales as uncertainty prevailed, with net withdrawals from funds in January, February and March. On a more positive note, outflows were down on Q4 2018.
The buoyancy of gross sales suggests investors are switching their holdings, either on asset allocation calls or moving to better-performing funds.
Among the leading ten fund groups, more than half recorded increased gross sales in the first quarter compared to the same period last year.
These included BlackRock, LGIM, Baillie Gifford, Royal London Asset Management and HSBC Global Asset Management.
Helen Pridham, editor of The Pridham Report, commented: "Advisers and investors are still unsure about the future and less tolerant of poor performance.
"There is little that fund managers can do about the political situation so keeping costs low and performance high is crucial."
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