BlackRock retakes net flows crown in Q2
The latest Pridham Report found that, in the second quarter, BlackRock retook top spot for both gross and net sales for the first time since Q3 2021, while Legal and General Investment Management received its highest-ever quarterly inflows.
The report found a ‘muted’ environment through Q2, as investors remained cautious in the face of an uncertain outlook, but index investing remained popular.
BlackRock’s gross retail sales of £7.4bn and net retail sales of £1.9bn topped the tables, dethroning previous net retail sales leader HSBC Asset Management thanks to lower redemptions.
The report noted that ‘The manager has benefited from continued trends in favour of index investing, such as cost and regulatory pressures. However, sales of actively managed funds remain a core component of its business, accounting for 24% of gross flows in the second quarter.’
LGIM saw its best-ever quarterly performance in gross inflows due to growing demand for thematic propositions like its Global Technology index and the strength of its core replacement products, like the L&G All Stocks Gilt index, which generated the highest sales.
Newcomers to the top 10 included Rathbones, which came ninth in gross retail sales with £1.2bn, and Hargreaves Lansdown, which was ninth for net sales, with £86m inflows.
While Rathbones received ‘consistent demand for its best-selling bond and equity funds’ (Rathbone Ethical Bond and Rathbone Global Opportunities) its largest flows last quarter went to the firm’s Strategic Growth Portfolio.
Meanwhile, M&G continued to climb the leaderboard, ranking sixth for gross and second for net sales, thanks to its best quarter for net inflows in over a decade. The firm’s equity range has been surging, with gross sales now split evenly between equity funds and its historically dominant bond range.
Pridham Report editor Anna Pridham said ‘There were mixed results in the second quarter. Among the top 10 fund groups, roughly half saw sales decline. Of those who reported a rise in new business, two experienced their highest quarterly gross sales on record.’