As weak data from economies is drip-fed into daily changing markets, fund management firms are taking the opportunity to either streamline or expand their fund range. A simple example is First State closing its Global Growth Fund with just £5m of assets under management having been launched over 12 years ago.
As one global door closes, another opens with RWC Partners bringing out their Global Value Fund at the end of August.
There has been great activity in the ETF world with Amundi and HSBC among those bringing new propositions into the UK.
There was even the introduction of a brand new fund management house, as EFG Asset Management was spun out of EFG Private Bank to offer a distinct UK business.
All of this is in stark contrast to investors who are looking to the more traditional asset classes rather than anything drastically new or different, with UK equities still core, emerging markets following closely behind, and equity income – UK and ex UK – taking in vast quantities of client money as they look to break the negative impact of cash-less-inflation eroding the real value of some of their assets.
Fixed income is still selling well, strategic bonds in particular – the second most popular IMA sector, with £156m in net retail sales, for the second consecutive month – as portfolio managers leave the asset allocation decision to the bond specialist fund managers.
The last quarter of the year is always an interesting one – with sales targets to be reached for fund houses and time running out for portfolio managers if there is a shortfall to be made up. This, combined with markets being the way they are, Q4 may see investors move away from their traditional asset allocations.
