Pridham Report: Threadneedle leads net retail sales in Q3

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Threadneedle Investments was the biggest-selling fund manager by net retail sales during the third quarter of the year, with sales of £643.5m, according to the Pridham Report.

A fall in bond fund sales saw M&G dislodged from the top spot for the first time in more than three years, slipping to fourth place.

The quarterly sales report revealed Threadneedle had been boosted by inflows into its European products and was helped by a fund of funds purchase by rival Jupiter Asset Management

Top ten managers by net retail sales in Q3

1.Threadneedle (£643.5m)

2. Standard Life Investments (£568.1m)

3. BNY Mellon (£416m)

4. M&G Investments (£411.5m)

5. Kames (£381.8m)

6. Axa Investment Management (£345.1m)

7. Jupiter (£329.6m)

8. BlackRock (£324.1m)

9. Cazenove (£269.5m)

10. HSBC (£99.8m)

Source: Pridham Report

The quarterly sales report revealed Threadneedle had been boosted by inflows into its European products and was helped by a fund of funds purchase by rival Jupiter Asset Management

Standard Life Investments was second-placed with sales of £568.1m, while BNY Mellon was in third position with net retail sales of £416m. M&G and Kames completed the top five managers by net retail sales, generating £411.5m and £381.8m, respectively.

Director of Fundscape Helen Pridham says poor investment sentiment and uncertainty over the RDR had contributed to a third quarter of mixed fortunes.

She says: “Last-minute preparations for RDR appear to be the main concern of advisers at present and hopes for next year are not great either, with the industry likely to go into limbo until platform regulation comes into effect at the end of 2013.”

Top ten managers by gross retail sales in Q3

1. M&G Investments (£2.3bn)

2. BlackRock (£1.7bn)

3. Invesco Perpetual (£1.4bn)

4. BNY Mellon (£1.2bn)

5. Threadneedle (£1.2bn)

6. Standard Life Investments (£1.1bn)

7. Fidelity (£1bn)

8. Jupiter (£950.1m)

9. Axa Investment Management (£736.2m)

10. Cazenove (£611.3m)

Source: Pridham Report

M&G Investments topped gross retail sales by some marging during the third quarter of 2012, with sales of more than £2.3bn.

BlackRock was the second biggest gross-seller of funds, generating just under £1.7bn in sales, while Invesco Perpetual came in third with around £1.4bn in gross sales.

Pridham adds: “M&G was forced to turn away business as some of its bond funds started to reach capacity and the FSA raised concerns about liquidity issues in fixed income funds.

“This had a depressing effect on the group’s net sales, although the company has some other strong product offerings, it reports that advisers are being distracted by the looming RDR deadline.”