2024
is
markedly
a
consequential
year
for
the
world,
with
more
than
half
of
the
world’s
population
going
to
the
polls,
as
well
as
the
lingering
shadow
of
war
and
megatrends
like
artificial
intelligence
(AI)
set
to
transform
the
global
political,
economic,
and
social
landscape.
Despite
all
of
this,
investors
are
standing
firm.
Most
asset
classes
did
see
outflows
at
the
start
of
the
year,
but
at
modest
levels.
Equity
Funds
Hit
Hardest
In
January,
fixed
income,
property,
money
market,
and
alternative
categories
all
suffered
net
outflows,
at
£25
million,
£68
million,
and
£109
million
respectively.
Equity
funds
were
hit
hardest
with
a
loss
of
£681
million,
Jack
Fletcher-Price,
associate
analyst
at
Morningstar,
finds.
Allocation
funds
bucked
the
trend
with
a
£162
million
inflow.
This
marks
the
continuation
of
a
depressing
trend
for
the
asset
class,
as equity
strategies
have
failed
to
record
a
single
month
of
net
inflows
over
the
past
12
months.
The
picture
was
brighter
for
a
select
few
categories.
Global
Large-Cap
Blend
Equity
and
US
Large-Cap
Blend
Equity
both
had
net
subscriptions
over
the
month,
at
£512
million
and
£329
million,
respectively.
However,
the
UK-Flex
Cap
Equity
category
led
the
pack
for
the
most
outflows,
shedding
£457
million
in
January,
with
Global
Large-Cap
Growth
Equity
not
far
behind
with
£252
million
in
redemptions.
Fixed
income
categories
also
experienced
both
gains
and
losses
in
January. Global
Corporate
Bond brought
in
£328
million,
whilst
Global
Corporate
Bond
–
GBP
Hedged
and
Other
Bond attracted
£191
million
and
£180
million,
respectively.
Meanwhile,
GBP
Corporate
Bond and
Global
Flexible
Bond
–
GBP
Hedged
fell
out
of
favour,
recording
net
outflows
of
£368
million
and
£348
million.
Beyond
category
trends,
January
also
marked
the
continuation
of
flows
out
of
active
funds
and
into
passive
vehicles.
Morningstar
data
finds
that
passives
attracted
over
£2.51
billion
whilst
investors
simultaneously
pulled
around
£3.29
billion
from
active
strategies.
Passive
Funds
See
Inflows
It
is
no
surprise
that
three
passive
funds
were
in
the
top
five
for
inflows
for
the
month.
The
iShares
ESG
Overseas
Corp
Bond
Index
fund
(UK)
took
the
top
spot
bringing
in
£339
million,
and
it
was
swiftly
followed
by
the iShares
North
American
Eq
Idx
Fd
(UK)
which
gained
£249
million,
and
the
iShares
UK
Equity
Index
Fund
(UK)
which
brought
in
£183
million.
The
flows
into
these
passive
vehicles,
managed
by
BlackRock,
helped
boost
the
fund
house
to
the
top
spot
for
the
largest
inflows
at
the
start
of
the
year,
adding
a
total
of
£689
million
to
its
assets.
Among
active
funds,
the
two
absorbing
the
biggest
inflows
were
the
popular
M&G
Japan
fund,
managed
by
Carl
Vine,
at
£204
million,
and
TM
Ruffer
Portfolio
fund
at
£237
million.
But,
active
funds
occupy
all
of
the
top
five
spots
for
outflows
in
January.
Federated
Hermes
S-T
Sterling
Prime
saw
the
biggest
redemptions,
with
£280
million,
and
Terry
Smith’s
Fundsmith
Equity
started
2024
with
outflows
reaching
£213
million.
The
JOHCM
UK
Dynamic
fund
was
blighted
by
£198
million
in
net
outflow
around
the
same
time
as
it
was
announced
that
its
manager
Alex
Savvides
will
be
departing
for
Jupiter
later
this
year.
And,
Schroder
All
Maturities
Corporate
Bond
saw
redemptions
of
£167
million.
Which
Fund
Managers
Attracted
Flows?
On
the
fund
house
side,
BlackRock
was
not
the
only
fund
group
to
attract
inflows
in
January.
This
was
also
the
case
for
Legal
&
General
(£370
million),
Vanguard
(£186
million)
and
HSBC
(£169
million),
too.
Baillie
Gifford
continues
to
suffer
from
growth
equity
strategies
remaining
out
of
favour
with
investors.
The
fund
group’s
outflows
hit
£537
million
in
the
month
of
January
alone,
after
seeing
over
£7
billion
in
withdrawals
across
2023.
Embattled
Abrdn
also
saw
outflows
of
£125
million,
whilst
Schroders
reported
a
loss
of
£115
million.
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