May 28, 2013

UK Retail Investment Sales Will Increase as Advisers Adjust to RDR


BNY Mellon ranked 2nd in net sales over first quarter of 2013

LONDON, 28 May 2013 — Following the results of the recent Pridham Report on UK retail fund sales for the first quarter of 2013, Head of UK Wholesale at BNY Mellon Investment Management, Scott Goodsir, says that the lower level of sales across the industry may not be short-lived as advisers continue to adjust to Retail Distribution Review (RDR) proposals.

The Pridham Report, published earlier this month, revealed that fund managers with net retail sales of less than £300m have entered the top 10, a feat, Goodsir says, that is rare: “Traditionally investment managers have needed to post net sales figures of a minimum of £500m in order to make the top 10. However, this quarter only the top four investment houses achieved this.”

As the report points out, austerity and the squeezing of family budgets has obviously played a role in the findings but Goodsir believes that another key factor is that advisers are still adjusting to RDR reforms. “In our own discussions with advisers, it appears that they have been largely focussing their time and effort on the re-structuring of their businesses and pricing models. As a result, investment sales have understandably taken something of a back seat for now.”

Goodsir continued: “As advisers continue to implement changes to their business models we’re likely to see their focus change and sales into investments should gradually increase as a result.”

The report shows that despite the slowdown of sales across the industry, BNY Mellon has made the top 10 in net retail sales for 11 consecutive quarters and is second overall this quarter with net sales of £658m. Goodsir attributes this to the breadth and depth of the company’s proposition. “Quite simply, we have had a number of products performing very well in the right markets and across a broad range of sectors. Whether fixed income, emerging market income, global high income, absolute return or fund of funds, we offer investment solutions across a range of client types.”

BNY Mellon Asset Management is one of the world’s leading asset management organizations, encompassing BNY Mellon’s affiliated investment management firms and global distribution companies. Information about BNY Mellon Asset Management can be found at www.bnymellonam.com.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 36 countries and more than 100 markets. As of March 31, 2013, BNY Mellon had $26.3 trillion in assets under custody and/or administration, and $1.4 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.

This press release is issued by BNY Mellon Asset Management International Limited (ex-US)to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Registered office of BNY Mellon Asset Management International Limited: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Conduct Authority.

This press release is qualified for issuance in the UK and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Asset Management International Limited (ex-US) to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Registered office of BNY Mellon Asset Management International Limited: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Conduct Authority. BNY Mellon Asset Management International Limited, is ultimately owned by The Bank of New York Mellon Corporation.