The NS&I’s new ‘Pensioners Bonds’ also were a factor in the drop-off, the report says.
Net retail fund sales fell to their lowest level in a first quarter since 2008, according to Investment Association figures.
Some fund managers bucked the trend however. BlackRock, according to the report, scored a double first attracting the highest gross and net retail sales.
This is the fourth consecutive quarter that BlackRock has topped the gross retail sales chart, although it does include flows through defined contribution pension schemes in the figures. It is benefitting from increasing sales of its passive funds which account for the majority of its new business although sales of its actively managed funds also rose during the first quarter.
Woodford Investments saw its first sign of a sales slowdown with net sales dropping below the £1bn mark for the first quarter since its launch last year, but it is still outselling most of its competitors.
The report said the fall in sales may have been due to Woodford believers holding money back for the new investment trust launch.
Other stand-out sales performers in the first quarter were Kames and Hargreaves Lansdown, the report said. Kames entered the top 10 for net retail sales thanks to its bond funds.
“Although net business flows into fixed income funds generally are modest, there appears to be a considerable amount of switching going on as investors seek out the best returns they can find in this asset class,” said Helen Pridham, editor of the report.
Hargreaves Lansdown attracted strong sales thanks to the launch of two new multi manager funds – HL Multi-Manager UK Growth and HL Multi-Manager European. Together the funds raised over £250m in their offer periods.
Fidelity was another ‘notable entry’ in the retail sales chart, Pridham said. Although its gross sales have been relatively strong in recent years, its net sales have taken a while to recover, she pointed out.
“Mature fund management companies often have to run considerably harder than their younger competitors to grow their net business,” Pridham noted. “Fidelity’s improved investment performance has been a key to its success,” she added.
