M&G giants top fund sales table
July was once again a good month for cautious and income funds, though M&G was the clear winner in the investment house standings.
By Joshua Ausden, News Editor, FE Trustnet
Thursday August 16, 2012
Three of the five best-selling funds last month belong to M&G, according to the latest inflows figures from Cofunds.
Stuart Rhodes’
M&G Global Dividend fund and Richard Woolnough’s
M&G Optimal Income and
Strategic Corporate Bond portfolios all made it onto the elite list, joining
Newton Global Higher Income and
Jupiter Merlin Income.
Investors may have to soon look elsewhere for their exposure to the corporate bond market however, following M&G’s announcement that it is exploring methods of slowing down inflows into its £5.2bn M&G Strategic Corporate Bond and £6.3bn Corporate Bond portfolios.
However, the £8bn Optimal Income and £3bn Global Dividend funds remain open to new investment for the foreseeable future.
Both of Woolnough’s funds have beaten their sector average over one, three and five years, while Rhodes’ portfolio – only launched in 2008 – is top quartile over one and three years.
All three are income-focused – a theme that runs throughout the top-sellers list. According to FE data, Cazenove Multi Manager Diversity is the only fund in the top-10 that does not have an income target.
Ten best-selling funds in July 2012
Source: Cofunds
With interest rates at historic lows of just 0.5 per cent in the UK, there has been a surge in demand for income paying products of late. The mass inflows have concerned FE Alpha Managers
Steve Russell and
Martin Gray, who are watchful of
a bubble forming in the sector.
Overall, IMA Mixed Investment 20-60% Shares was once again the most popular sector with investors, accounting for five of the 10 best-selling funds.
These include the FE five crown-rated Invesco Perpetual Distribution and Premier Multi Asset Distribution portfolios. However, there were significant outflows for the IMA UK Equity Income, IMA UK All Companies and IMA Europe ex UK sectors.
The North American sector also fared well last month, following strong performance over the last year. AXA Framlington American Core Growth led the charge in 24th place, with a further four American funds falling inside the top-50.
Commenting on the results, Michelle Woodburn, head of fund group relations at Cofunds, said: "While Mixed Investment 20-60% Shares boomed in July, overall it proved to be a volatile month with many sectors seeing mass outflows."
"The sectors that followed this trend have been out of favour all year so it does not come as a surprise."