Following on from our Q115 platform statistics, this week we're looking at which funds and fund groups were hot on platforms and why. The table below shows the top five fund groups and the top five funds by gross sales for the platform universe* in the first quarter of 2015.
Invesco headed up the table for the second quarter in a row. It has staged a steady recovery since Woodford's departure and has five funds in the top 25 funds. It is renowned for its income expertise, but its IP Global Targeted Returns fund (a rival to Standard Life's popular Global Absolute Returns Strategy) is beginning to turn advisers' heads. Now that GARS has become so big, some advisers will be keen to diversify exposure to GARS, so credible rivals will be considered. With GARS by far and away from its biggest seller, Standard Life should develop and bring on other funds of GARs quality.
Fundscape and the Pridham Report have jointly published the Definitive Guide to the UK Fund Industry 2015, covering all aspects from fund manufacture to distribution.
Despite predictions to the contrary, two years after the Retail Distribution Review (RDR) was introduced, the UK’s fund industry is flourishing. It is now the largest domestic market in the Europe with assets of £753bn, and is larger than the domestic fund markets of Switzerland, Germany, France and Italy.
Further expansion is predicted. Low interest rates, the rising number of baby boomers and the pension freedom that comes into force in April will help to fuel growth. Five-year projections with pessimistic, realistic and optimistic scenarios have been produced in the guide. Bella Caridade-Ferreira, CEO of Fundscape said “UK fund industry assets will skyrocket on the back of this unique combination of factors. Our realistic scenario sees assets rise to £1,449bn by 2019, a compound annual growth rate of 12.8%. In the optimistic scenario, 2019 assets could be in the region of £1,773n. Or even higher.”
You’re probably wondering where we’ve been these past few months, and have been bemoaning the lack of insightful posts and general industry chitchat. The summer is always a busy time for us, but as well as our usual publications and quarterly workload, we’ve had our noses to the grindstone producing a large study on behalf of Alfi, the Association of Luxembourg Fund Industry.
This is the first time week that we’ve actually been able to come up for air. The report is done and dusted, it has been sent off to the printers and I’m finalising the presentation for the Alfi conference next week when the report will be launched. Details of the conference on 23rd and 24th September can be found at www.alfi.lu. However, you don’t have to attend to get hold of the report. On the day of the launch, it will be uploaded to the website and will be freely available to download (we’ll post a link on here to make it easier for you to find).