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Pridham 2017 report: OMGI on top as Baillie Gifford breaks records

Pridham 2017 report: OMGI on top as Baillie Gifford breaks records

Old Mutual Global Investors (OMGI) managed to ward off BlackRock and a record-breaking Baillie Gifford to take top spot in the 2017 fund sales charts

According to the closely watched Pridham Report, OMGI pulled in net sales (see table below) of £3.44 billion in 2017, pipping BlackRock which attracted £3.36 billion. 

Top ten managers by net retail sales in 2017 (£m)
1 Old Mutual Global Investors £3,436.40
2 BlackRock £3,358.00
3 Legal & General IM £2,895.00
4 Fundsmith £2,189.30
5 Baillie Gifford £1,926.00
6 Schroders £1,366.00
7 Jupiter £1,061.00
8 Hargreaves Lansdown £957.60
9 Royal London AM £924.50
10 BMO £924.30

The OMGI flows were made from a combination of Richard Buxton's (pictured) single strategy funds business - which Old Mutual Wealth struck a deal to sell to TA Associates at the end of last year - and its multi-asset division. 

In gross terms (see table below) BlackRock took top spot attracting £16.4 billion. There was also a return to form for M&G, which re-entered the top 10 pulling in £6.3 billion. 

Top ten managers by gross retail sales in 2017 (£m)
1 BlackRock £16,390.80
2 Fidelity £9,703.00
3 Legal & General IM £8,404.90
4 Invesco Perpetual £8,332.30
5 Old Mutual Global Investors £8,139.50
6 Schroders £7,946.70
7 Standard Life Inv £6,707.80
8 JPMorgan £6,471.90
9 Jupiter £6,386.20
10 M&G £6,260.80

'There was little change among the top-selling fund groups last year, except that M&G is back among the leaders. It is still seen as a go-to manager for fixed income funds,' Pridham Report editor Helen Pridham said.

'[However], many of these groups have mature business on their books so they also suffer from natural outflows. Old Mutual Global Investors by contrast, which leads on the net side, really only got into gear in 2013 when Richard Buxton arrived, so much of its business is newer.' 

Elsewhere, Legal & General Investment Management (LGIM), Schroders and Jupiter also rank highly for both gross and net business last year. In net terms the trio drew in £2.9 billion, £1.4 billion and £1.06 billion respectively.   

'LGIM attracted both passive and active fund flows. Schroders benefits when equity funds, its strongest suit, are in favour. Equity funds also underpinned Jupiter’s success along with best sellers such as Jupiter Strategic Bond and Jupiter Absolute Return,' Pridham noted. 

Meanwhile Baillie Gifford enjoyed a record year with net sales of £1.9 billion, which Pridham attributed to [the] 'increase [in] its presence in the retail space and its promotion of the merits of active management paid off'.

It was also a good year for BMO (formerly F&C), which entered into the net top 10 sellers with a £924 million inflow, thanks to the popularity of funds such as F&C European Growth & Income and F&C Global Equity Market Neutral.

Terry Smith's Fundmith remained in vogue, taking fourth spot in net sales attracting £606.5 million. 

Looking ahead, Pridham warned the 2018 might not be quite so 'smooth' for fund sales. 

'Hopefully, investors won’t be put off funds in 2018 by shock horror headlines about fund charges, as a result of greater transparency under Mifid II,' she said.

'[But] with growing fears of a possible market correction, they may become more circumspect anyway.' 

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