The latest end-of-year European fund industry data has uncovered the top selling funds across bonds, equities and asset allocation over the course of 2012.
In Lipper’s Annual European Fund Market Review, which covers funds sales, trends and its outlook for the coming year, fixed income strategies were seen as the most sought-after funds in 2012.
Taking a look at the best-selling funds of the year, the inflows experienced by the fund at the top of the charts was almost four times that of the leading equity fund.
Best-selling bond funds of 2012
|Fund||Fund Managers(s)||Bond Sector||Sales (€bn)|
|AllianceBernstein American Income Portfolio||Douglas Peebles/Paul DeNoon/Gershon Distenfeld||USD||8.23|
|PIMCO GIS Total Return Bond Fund||Bill Gross||USD||8.06|
|PIMCO GIS Global Investment Grade Credit Fund||Mark Kiesel||Global corporates||5.86|
|PIMCO GIS Diversified Income Fund||Eve Tournier||Global corporates||5.58|
|M&G Optimal Income Fund||Richard Woolnough||Flexible||5.13|
Leading the sales in the bond sector was the AllianceBernstein American Income Portfolio, which is run by Douglas Peebles, Paul DeNoon and Gershon Distenfeld. This fund experienced €8.23 billion of inflows over the course of 2012.
One of the notable stand-outs in this area was Eve Tournier's PIMCO GIS Diversified Income Fund, which saw a considerable increase on its 2011 performance and is now the 22nd biggest fund by assets in the Pan-European market covered by Lipper.
Best-selling equity funds of 2012
|Fund||Fund Managers(s)||Equity Sector||Sales (€bn)|
|M&G Global Dividend||Stuart Rhodes||Global||2.72|
|Morgan Stanley-Global Brands||Bruno Paulson/Peter Wright/William Lock||Global||2.43|
|BlackRock IS Emerging Markets Index Fund||n/a||Emerging Markets||2.4|
|Aberdeen Global Emerging Markets Equity||Devan Kaloo||Emerging Markets||2.35|
|DWS Top Dividende||Thomas Schüssler||Global||1.8|
Meanwhile, in the equity sector, the fund attracting the most amount of new money was the M&G Global Dividend fund, which saw €2.7 billion of inflows. This fund has been run since launch by Stuart Rhodes.
Best-selling mixed asset funds in 2012
|Fund||Fund Managers(s)||Mixed Asset Sector||Sales (€bn)|
|Standard Life Global Absolute Return Strategies||Guy Stern/Euan Munro||Asset Allocation||5.48|
|Newton Real Return||Iain Stewart||Asset Allocation||2.39|
|Baillie Gifford Diversified Growth||Patrick Edwardson/Mike Brooks||Asset Allocation||2.55|
|Invesco Balanced Risk Allocation Fund||Scott E. Wolle||Asset Allocation||1.99|
|Baring Dynamic Asset Allocation Fund||Percival Stanion||Asset Allocation||1.97|
The Lipper data also included the best-selling mixed asset fund of 2012, which was the Standard Life Global Absolute Return Strategies. The fund, run by Guy Stern and Euan Munro, saw €5.4 billion of inflows in 2012.
On a group basis, bond houses also dominated. PIMCO saw the most new money with €35.1 billion in inflows, which included three of the top selling bond funds of the year.
Meanwhile, AXA Investment Managers (€24 billion) and BlackRock (€14.8 billion) took second and third place in the annual sales figures.
Looking at the industry as a whole, sales of long-term funds across Europe totaled €230.4 billion in 2012, which is the fifth most successful year of the past decade. The sales of long-term funds in Europe were greater than those seen in the US.
In total, fixed income funds, excluding ETFs, accounted for €217 billion of sales, with the combined sales of both emerging market debt and high yield bond funds making up 40% of this figure.
This marked a strong year for emerging market debt funds, which went from the 40th most popular sector in 2011 to sit at the top sector in 2012. This was due to €27.6 billion in sales over the 12 month period.
This strong performance on the fixed income side made up for the outflows experienced by equity funds. These strategies saw outflows of €8.8 billion over the course of 2012.
While Lipper did state an improvement of sales was witnessed towards the end of 2012, it refuted the claims of a ‘Great Rotation’ being underway and pointed to its previous assertion this was more akin to a ‘small oscillation’ away from bonds and towards equities.
Further on in the report, Lipper did state it expects a growth – albeit on an uneven basis – in equity fund sales over the course of 2013.