Baillie Gifford fund sales surge following strong performance
Report names the fund groups that proved most popular with investors in 2020.
4th February 2021 11:18
by Kyle Caldwell from interactive investor
Report names the fund groups that proved most popular with investors in 2020.
Baillie Gifford was the most successful active fund manager in attracting investors to its fund range in 2020, according to the widely followed Pridham report.
The report, which has monitored fund sales and asset trends among UK investors for more than 20 years, ranked Baillie Gifford in fourth place for gross retail sales over the year (£12.25 billion) and in second place for net retail sales (just over £5 billion). Net sales are assets remaining after investor withdrawals, while gross sales take into account only new money invested.
Year-on-year, Baillie Gifford saw both gross and net sales of its funds increase by more than 100%.
Baillie Gifford was the most successful active fund manager, as the firms that attracted more investment, namely BlackRock, for both gross and net sales, and Fidelity and Legal & General for gross sales, did so due to the strong popularity of their passive fund ranges.
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Strong performance across Baillie Gifford’s fund range attracted the attention of investors. Three of its funds were in the top 10 performers for 2020: Baillie Gifford Positive Change, Baillie Gifford Global Discovery and Baillie Gifford Long Term Global Growth.
Elsewhere, the report notes that Allianz Global Investors “made a significant impact in 2020”, due to the strong performance of its bond funds. The firm was in fifth place for net retail sales, attracting more than £2.5 billion.
In addition, it was a good year for Liontrust and Fundsmith. Both were new names in the top 10 for gross sales, with sales increasing by 65% and 45% compared to 2019.
Liontrust’s fund sales were boosted by increasing demand for funds that invest in a socially responsible fashion by applying ESG (environmental, social and governance) criteria.
Two other big beneficiaries of this trend were Royal London and Rathbones. Each firm has funds in the interactive investor ACE 40 list: Royal London Sustainable Leaders, Royal London Ethical Bond, Royal London Sustainable Diversified Trust, Royal London Sustainable World, Liontrust UK Ethical 2, Liontrust Sustainable Future European Growth, Liontrust Sustainable Future Corporate Bond and Rathbone Ethical Bond.
- Why ESG fund sales are booming
- Want to invest ethically? ii’s ACE 40 list of ethical investments can help
Top 10 fund firms by gross retail sales in 2020
| Fund firm | Gross retail sales (£ billion) |
|---|---|
| BlackRock | £29,902.80 |
| Fidelity | £12,907.80 |
| Legal & General | £12,627.20 |
| Baillie Gifford | £12,250.00 |
| Royal London | £10,638.80 |
| JP Morgan | £8,315.20 |
| HSBC | £7,915.90 |
| Liontrust | £7,582.00 |
| Fundsmith | £6,668.30 |
| Jupiter | £5,669.80 |
Source and copyright: the Pridham report
Top 10 fund firms by net retail sales in 2020
| Fund firm | Net retail sales (£ billion) |
|---|---|
| BlackRock | £6,289.70 |
| Baillie Gifford | £5,194.80 |
| Royal London | £3,410.80 |
| JP Morgan | £2,753.30 |
| Allianz Global Investors | £2,630.30 |
| Liontrust | £2,601.00 |
| HSBC | £2,309.80 |
| Fidelity | £1,905.80 |
| Rathbones | £1,482.20 |
| Legal & General | £1,168.00 |
Source and copyright: the Pridham report
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