Nine months in, and what a contradictory year 2019 is turning out to be! Net sales to the end of the third quarter have been somewhat jaded, and without central bank intervention earlier in the year, we could well be looking at a considerably less positive picture then the year-to-date net inflows of €92bn into long-term funds would indicate. While industry assets have grown by over €1trn so far this year, market performance (not net new money) has accounted for over 90% of this growth – typically, we would expect an equal contribution of net sales and market performance to fuel asset growth.
At the asset class level, September brought signs that changes may well be afoot. While bond funds still top the leaderboard for sales, net inflows have tapered and in September bonds lost some of their shine as they saw their lowest monthly haul this year. Conversely, fortunes reversed for both equity and mixed asset as each recorded their first (modest) net inflows of the year.
September also saw some leading lights of the UK boutique asset manager market succumb to continuing Brexit uncertainty – read more in Competitor oversight.
Finally, do have a read of our annual deep-dive into the front-line function of sales and account management in Distribution, as fund selectors reveal their service preferences.