BlackRock Beats M&G In First Quarter Sales - Report

Ainhoa Barcelona

14 May 2013

BlackRock enjoyed healthy sales flows in the first quarter, securing the top spot for gross retail sales and finally surpassingM&G, according to the latest Pridham report, despite an overall decline in sales in the aftermath of the RDR. BlackRock also placed fifth for net retail sales.

The firm’s gross sales were recorded at £2.3 billion ($3.5 billion), and its UK Special Situations and European Dynamic funds did particularly well according to the report, as well as its mixed-asset, risk-rated funds.

Commenting on the firm’s success, Pridham said BlackRock had managed to achieve the twin goals of gaining support from both portfolio builders and advisors looking for ready-made solutions.

Meanwhile, M&G came second and logged £2.1 billion in gross sales. BNY Mellon placed third having occupied a permanent place in the top ten for gross and net retail sales for the past 11 quarters.

In terms of net sales, the IMA figures showed that the first quarter was the worst for sales of funds in five years. Helen Pridham, editor of The Pridham Report said: “Austerity and the squeeze on family budgets is clearly not helping matters but RDR is undoubtedly a contributory factor to the decline in mass market investment, reflected by the lower levels of ISA investment.”

Standard Life Investments topped the net inflows chart with £917 million. The firm is still benefitting from flows into its popular absolute return GARS fund, which accounted for just over half of the sales, the report said.

BNY Mellon came second with flows in the first quarter at 40 per cent on the same time last year, recording £658 million. Cazenove, having its best quarter ever, came third with £498 million due to its equity funds attracting more investors. Cazenove UK Opportunities led the way while the report also found that Cazenove Multi Manager Diversity in the fund of funds area was also doing well.