Global stock markets were down, but UK stock markets were up in the third quarter. The net effect was that platform assets flatlined with a tiny 0.2% rise to £906bn. The UK economy also flatlined in the third quarter, narrowly avoiding a recession as high interest rates and inflation weighed on consumer confidence and households struggled with living costs. Gross sales were stable at £32.7bn, but uncertainty, lower disposable incomes and the siren call of cash and gilts, resulted in substantial outflows. Net flows plummeted to just £2.3bn — the worst quarterly net sales on Fundscape’s records —resulting in a net-to-gross sales ratio of just 7%. Seven!
Overall platform assets declined by 2.3% to £163.9bn in the third quarter as the eurozone crisis took its toll. However Axa Elevate, Nucleus and Ascentric bucked the trend.
Despite the summer of discontent, gross sales rose by 1.4% to £12.5bn relative to the previous quarter, but net flows were down slightly (-0.7%) to £7.5bn. Sales would have been a damp squib were it not for Cofunds with gross flows of £4.6bn and net flows of £3.3bn.
Fundscape's latest Pridham Report (Q3) showed that sales plummeted over the third quarter. Most asset managers saw their business decline, but some did well in key fund areas. M&G retained top position in the retail sales chart for a recordbreaking 12th quarter as its bond funds returned to favour again.
Click here to read the full press release.
The latest (Q1) issue of Fundscape's confidential Pridham Report has just been released. M&G was the top group for net retail sales for the tenth consecutive quarter. Click here to view the press release.