Allianz Global Investors has defied the Covid-19 outbreak to post its best ever quarterly sales figures for UK-domiciled funds thanks largely to Mike Riddell’s fixed income fund, according to the latest Pridham Report.
Its net inflows were £570.5m in Q1 2020, the third best group for the quarter behind Blackrock, which landed £1.4bn in net sales, and HSBC Global Asset Management, which drew in £868.7m.
But while passives boosted Blackrock and HSBC Gam, it was the actively-managed AllianzGI Strategic Bond fund that buoyed AllianzGI’s net inflows.
The £1.4bn fund has returned 18.9% since the coronavirus sell-off kicked off on 20 February. That represents significant outperformance compared to the Investment Association Sterling Strategic Bond sector, which has fallen 4.6% over the period.
The fund is co-managed by Riddell (pictured) and Kacper Brzezniak. It brought in £330m in March alone, according Morningstar flows figures.
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Sustainable funds enjoy stickier assets during virus crisis
Sustainable fund providers also withstood the coronavirus market crisis better than their peers.
The Royal London Sustainable Leaders fund made the biggest contribution to RLAM’s net business, which saw it fourth for both gross and net sales, which sat at £3bn and £463.4m respectively.
In an interview with Portfolio Adviser earlier this year, fund manager Mike Fox said assets in his sustainable range tended to be stickier than assets in traditional funds not focussed on responsible investment.
Liontrust and Rathbones benefited from the same themes with the former enjoying net flows across the whole of its Sustainable Future range, while at the latter the Ethical Bond fund remained popular.
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Investment industry enjoys calmer start to Q2
Pridham Report editor Helen Pridham said asset managers have indicated Q2 has started off on a quieter note with investors viewing current market conditions as a buying opportunity.
“Advisers know that most investors are in it for the long term and are therefore remaining invested,” Pridham says.
“The ‘fear of missing out’ on a market recovery is also helping to reduce redemptions. However, the industry may have to wait for some time before much new money starts flowing into funds again.”
