Strong sales for mixed investment 20-60
For the second consecutive month, mixed investments proved a popular choice with advisers. In particular the mixed investment 20-60 per cent shares sector stood out as a strong performer, accounting for 42 per cent of net sales on the platform, according to the latest sales trends figures from Cofunds.
The best-selling fund in the sector overall was the £663.9m Cazenove Multi-Manager Diversity fund, managed by Marcus Brookes.
The fund, which has a bronze star rating from Morningstar, ranks 12 in the sector out of 155 funds.
Other funds in the same sector that ranked among Cofunds’ 20 best-selling were the £3.5bn Jupiter Merlin Income Portfolio fund, the £66.6m Premier Multi-Asset Distribution fund, Thames River’s £543.7m Distribution fund, and HSBC’s £393.2m Open Global Distribution fund.
Michelle Woodburn, head of fund group relations for Cofunds, said high inflows into the mixed investment shares reflected investor caution.
However there were pockets of interest in emerging markets with solid sales in established players such as First State’s Global Emerging Market Leaders and Aberdeen’s Emerging Markets funds.
Within the bond sector, strategic bond funds were the most popular, while others lagged behind significantly.
Nigel Appleton, IFA for Gibraltar-based Gibro Group, said: “I’m cautious but I don’t use multi-manager funds because the funds they hold aren’t necessarily the best. We use risk-rated model portfolios we put together ourselves.”
For clients chasing income, Mr Appleton favours funds such as Invesco Perpetual’s £3.2bn Monthly Income Plus. For clients seeking growth he still recommends emerging markets, and added that he was avoiding Europe “like the plague”.