A 41% fall in net fund sales to £2 billion (€2.5 billion) in the third quarter highlighted an overall slowdown in fund sales activity in the UK, according to Fundscape and Matrix Solutions.
“The first half of the year was relatively buoyant, but by the third quarter sales were beginning to slow as seasonal factors and retail distribution review (RDR) preparation began to bite,” says a statement published with the quarterly Distribution Report.
Gross sales across the fund distribution universe were £22.1 billion in the third quarter of the year, down 5% on the previous quarter and 5% on the corresponding quarter of 2011.
Bella Caridade-Ferreira, director of Fundscape, says as well as the Olympics in London, eurozone fears and economic uncertainty played a big part.
The key driver, however, was that intermediaries had begun to concentrate on preparing for the RDR.
Independent financial adviser and wealth manager flows were down 14% and 9%, respectively.
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