According to the latest version of the Pridham Report, the Fidelity Worldwide Investment “has seen the wheel of fortune turn back in its favour over the past two years” on the back of improved investment performance and the strength of Moneybuilder and Global Dividend.
This comes, the report points out despite the fact that while at a gross level larger managers continue to be popular, “the maturity of their business makes the more susceptible to outflows.”
“Newer and smaller groups have less mature business on their books so their net positions look better even though their current sales are not as high as some of the more established groups,” Helen Pridham, editor of The Pridham Report explained.
This is evident in the difference between the net flows of the first and second placed firms and those below them.
Fundsmith, in first place reported net inflows of £604m over the quarter; WIM is estimated to have seen £550m. The next four places however, belong to major firms, SLI, Fidelity, Legal & General and BlackRock, all with between £255m and £286m.
Despite these flows, the funds industry as a whole posted its worst first quarter in over 20 years.
“A bad start to the year on stock markets fuelled by fears about China, followed by the worries and uncertainty caused by the beginning of the European referendum campaign, meant that redemptions exceeded new investment as many advisors and investors decided to put long term investment decisions on hold.”
However, Pridham added: “While these managers have managed to buck the trend, the first half of this year is going to be tough for many fund managers. Until the European referendum has taken place, many investors will continue to be hesitant to commit.”