The fund firms investors are turning to during market turmoil
27th July 2022 10:40
by Sam Benstead from interactive investor
Industry giants continue to rake in cash despite falling stock markets. Sam Benstead names the most popular fund firms with investors in the second quarter of 2022.
Passive investment fund groups attracted the most new money in the spring, as investors sought low costs and benchmark returns during a difficult period for stock and bond markets.
The Pridham Report, a quarterly research paper on the fund management industry in Britain, found that BlackRock, the UK’s largest fund manager, kept its place at the top of the gross sales chart for the second quarter of 2022.
The American investment manager, best known for its iShares passive range, enjoyed a 20% boost to its quarter-on-quarter gross sales, driven primarily by record equity inflows.
Legal & General Investment Management and HSBC Asset Management also attracted strong levels of new business, driven by their passive offerings.
Fidelity had another strong quarter, enabling it to maintain its second position for gross sales and to remain top of the league for net retail sales for the second consecutive quarter.
It saw strong inflows across passive and actively managed equity products, with the Fidelity Index World and Fidelity Global Dividend funds continuing to prove popular, according to the report.
| Top groups by gross retail sales Q2 2022 | £m |
|---|---|
| BlackRock | 9,043 |
| Fidelity | 4141 |
| Legal & General IM | 4137 |
| HSBC AM | 2940 |
| Royal London | 2165 |
| JPMorgan AM | 2023 |
| Liontrust | 1706 |
| Schroders | 1637 |
| Jupiter | 1584 |
| Baillie Gifford | 1537 |
Source: The Pridham Report, Q2 2022
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Net sales are assets remaining after investor withdrawals, while gross sales take into account only new money invested.
Strong flows into Allianz Global Investors’ bond funds enabled it to re-enter the top tables, recording the fifth-highest level of net sales in the second quarter.
Flows into its equity products have been steadily increasing and represented nearly a quarter of its gross flows over the period.
Meanwhile, money into stock market funds also saw Jupiter re-enter the top 10 for tables for gross sales in ninth place.
One of its best-sellers was the Jupiter Asian Income Fund, while on the fixed income side the Jupiter Strategic Bond fund also proved popular with investors.
Other groups that made it into the top 10 for net retail sales were EdenTree, Franklin Templeton and Man GLG.
Sustainable investment specialist EdenTree saw record inflows into its Responsible and Sustainable Short Dated Bond Fund as investors sought to reduce their risk to rising interest rates.
Franklin Templeton had its strongest quarter on record thanks to sales of the ClearBridge Global Infrastructure Income Fund. Man GLG’s top seller was the Man GLG Income fund. Both are members of interactive investor’s Super 60 Investment Ideas.
Anna Pridham, co-editor of The Pridham Report, said: “The many headwinds facing financial markets weighed heavily on investor sentiment this quarter. However, with valuations of risk assets now at more attractive levels, many investors continue to put their faith in funds for their long-term savings.”
| Top groups by net retail sales | £m |
|---|---|
| Fidelity | 1027 |
| HSBC AM | 800 |
| Legal & General IM | 543 |
| Royal London | 326 |
| Allianz Global Investors | 243 |
| BMO GAM | 177 |
| EdenTree | 106 |
| Franklin Templeton | 91 |
| BlackRock | 81 |
| Man GLG | 72 |
Source: The Pridham Report, Q2 2022
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