The best in UK fund management was recognised as Royal London was named the best large fund management group at the UK Lipper Fund Awards last night (Thursday 20 April).
Julius Baer took the prize for best small fund management group while Waverton, Rubrics and Courtiers also won in equity, bond and mixed asset small asset manager categories.
Investors faced a perfect storm in 2022, with war on European soil for the first time in decades coupled with soaring inflation. Some £2.01trn was held in UK mutual funds and ETFs at the end of 2022. That was down from £2.27trn the previous year and represented the first fall in total net assets since 2018, and of greater magnitude.
Non-money market funds shed £53.9bn over the year, with the largest quanta (£34.9bn) being redeemed from equity funds – the highest on record according to analysis from Refinitiv Lipper.
The main factors were market declines, with equities, bonds, alternatives, real estate, and mixed assets down over the year. However, investors also pulled money from funds, with the only money market funds being in the black over the year, attracting £12.7bn.
Dewi John, Head of Research, UK & Ireland, for Refinitiv Lipper, comments: “Last year was hugely challenging for the asset management industry. Markets roiled, as traditional safe havens provided little shelter.
“Those fund managers whose excellence has been recognised in these awards can be confident that they have proven their mettle in the most challenging of market environments.”
The UK picture over 2023
Money market funds saw the only inflows, at £12.7bn. During the first three quarters, this asset class was in redemption mode, but Q4 saw the tables turn with a vengeance as £53.4bn went into these funds.
Non–money market funds suffered outflows of £53.9bn.
Equity funds saw the largest outflows, of £34.9bn. UK equities once more bore the brunt of this, with Equity UK, UK Income, and Small & Mid-cap seeing £23.3bn of outflows.
Alternatives saw outflows of £12bn, with asset-backed security funds being particular victims of these redemptions.
Despite heavy losses, Bond funds experienced relatively small outflows of £2.6bn.
Mixed-assets funds saw outflows of £1.2bn, although GBP Aggressive funds in this asset class continue to attract cash.
Sustainable funds attracted £27.6bn. Of these, equities got the largest share (£21.2bn).
