Aviva today released data on the top and bottom 10 funds for inflows during 2008. This data relates to Aviva's investment and super platform and gives a snapshot of how customers invested their money in 2008.
Aviva today released data on the top and bottom 10 funds for inflows during 2008. This data relates to Aviva's investment and super platform and gives a snapshot of how customers invested their money in 2008.
The data shows that 2008 was a year of two distinct halves in terms of investor sentiment. In the first quarter of 2008, eight of the top 10 net inflows into Aviva's platform went to equity or mortgage trusts. Only two cash and term deposit funds were in the top 10. As equity markets around the world started to decline in May/June 2008 and the global economic credit crisis gained momentum, defensive portfolio approaches prevailed.
The flight to cash in the second half of the year was reflected in huge growth in investments in term deposits and cash. Five of the top 10 funds (net flows), for the year ending December 2008 were cash or term deposits. In the December 2008 quarter, term deposits represented 28% of gross inflows into Aviva's platform. This contrasts with the 12 months to March 2008, in which gross inflows into term deposits accounted for only 1%.
According to Aviva's Stuart Fechner, distribution development manager, said: "The increase has been staggering in comparison to previous years. When the government's guarantee on bank deposits was implemented it acted like a tail-wind, supporting the investor flight to safety."
A few Australian equity trusts managed to achieve consistent flows throughout 2008 despite financial market turbulence. In particular, the Ausbil Australian Active Equity Fund and Fidelity Australian Equities Fund, which are both relatively neutral in their investment style, were consistently amongst the most favoured funds.
Also coming into the top 10 was the Aviva Investors High Growth Shares Fund. Craig Bingham, Asia Pacific CEO of Aviva Investors, commented: "This is a pleasing result that indicates investors are seeking out quality, reliable managers. The High Growth Shares Fund has a strong history of out-performance and continues to perform despite turbulent market conditions."
Believers in the "stronger for longer" resources growth stories were also noticeable, investing in the well-supported Colonial First State Wholesale Global Resources Fund.
On the downside, the top three funds for redemptions were Platinum International Fund, Perpetual's Wholesale Industrial Fund and Challenger Howard Wholesale Mortgage Fund. Stuart Fechner said: "These are high quality funds and the high level of redemptions reflects the high level of FUM rather than outflows. In fact, if we look at Perpetual's Wholesale Industrial Fund, it actually achieved net inflows for the year. Importantly too, the Platinum International fund and the Challenger Howard Wholesale Mortgage Fund recorded first quartile performance over the year to November 2008."
Year ended 31 December 2008
Top 10 gross inflows
- St George Bank 12 Month TD
- UBS Cash Fund
- Perpetual's W'sale Industrial Fund
- Ausbil Australian Active Equity Fund
- Challenger Howard W'sale Mortgage Fund
- Aviva Investors High Growth Shares Fund
- Colonial First State W'sale Global Res Fund
- Platinum International Fund
- Colonial First State W'sale Geared Share Fund
- AXA Wholesale Australian Monthly Income Fund
Top 10 gross outflows
- Platinum International Fund
- Perpetual's W'sale Industrial Fund
- Challenger Howard W'sale Mortgage Fund
- Challenger High Yield Fund - IDPS
- UBS Cash Fund
- Colonial First State W'sale Imputation Fund
- St George Bank 12 Month TD
- Investors Mutual Australian Share Fund
- AMP Capital Enhanced Yield Fund Class A Units
- AXA (Wholesale) Global Equity - Value Fund
Top 10 net inflows
- St George Bank 12 Month TD
- Ausbil Australian Active Equity Fund
- UBS Cash Fund
- Colonial First State W'sale Global Res Fund
- Adelaide Bank 12 Month TD
- Fidelity Australian Equities Fund
- Aviva Investors High Growth Shares Fund
- St George Bank 3 Month TD
- Colonial First State W'sale Geared Share Fund
- St George Bank 6 Month TD
-ends-
For more information
Ariana Alvarenga
Public Relations
Phone: (03) 9829 8985
Mobile: 0409 187 487
Sue Voglis
Research & Public Relations Manager
Phone: (03) 9829 8057
Mobile: 0408 309 247
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