LONDON (10 May 2024) – ISS Market Intelligence (ISS MI), a leading global provider of data, analytics, insights, media, and events solutions to the global financial services industry, announces the release of The Pridham Report, Q1 2024, an analysis of fund sales and asset trends in the UK. This report provides insights into the developments in the industry, enabling fund groups to track their progress in the market.
2024 opened with elevated retail gross sales of UK domiciled funds compared to 2023. This included quarter-over-quarter and year-over-year sales growth in all three major asset classes. Half of reporting fund groups also managed to top their Q1 2023 and Q4 2023 sales results. With equity markets currently buoyant and fixed income offering investors both yield and appreciation potential, there are reasons to believe that, after consecutive bruising years, the sun may shine for UK fund managers in 2024. Nonetheless, net retail flows remained negative in the quarter.
BlackRock’s UK leadership position was further strengthened in the first quarter of 2024. Gross retail flows into its UK domiciled open-ended investment funds crossed the £10 billion mark for the first time since the final quarter of 2020. HSBC Asset Management, meanwhile, moved up one ranking in both the gross and net retail sales rankings as the group reported recent highs in both categories for the quarter. Passive fund sales featured prominently in the success of the four largest fund groups by retail sales, accounting for 74% of their new flows.
Although passive fund sales continue to contribute heavily to the leaders of the sales boards, there were also positive signs for actively focused fund groups. Both gross and net sales improved broadly, and seven more fund groups moved into positive sales territory. “Q1 retail sales showed that demand for high-performing active funds remains there. The active opportunity, however, is diverse, with fund groups often only seeing success in a limited number of investment categories at one time,” according to Benjamin Reed-Hurwitz, Associate Director, EMEA Research at ISS MI and editor of the Report.
Artemis moved into the Top 10 best-selling gross and net sales rankings in the opening quarter of 2024. Artemis recorded strong growth in equity funds with the Artemis UK Select fund registering as its top retail seller.
Jupiter, meanwhile, moved up two spots to seventh for gross new business and has seen growth in three consecutive quarters. The Jupiter India Fund garnered increased retail attention placing it within the quarter’s best-selling retail funds. The now over £1.5 billion fund has performed strongly since the beginning of 2023 with 1-year returns eclipsing 50%1.
Equity fund sales were key to Natixis and T. Rowe Price moving into the Top 10 best-selling net new business rankings. Both firms saw success in the quarter as a result of US equity fund sales [to UK investors]. Natixis Loomis Sayles U.S. Equity Leaders and the T. Rowe Price US Smaller Companies Equity fund were the fund managers’ respective leading equity funds.
Mid-way through the second quarter, cautious optimism appears to be the prevailing mood amongst asset managers as green shoots have shown in the form of elevated gross sales levels. “As retail investors and their advisers adjust their portfolio allocations to reflect the outlook of higher for longer interest rates, opportunities will be created for fund groups to win new business,” remarks Benjamin Reed-Hurwitz.
For more information and to access the full report, visit https://page.issmarketintelligence.com/mi-uk-pridham-report
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