Cofunds has published statistics showing that the Investment Management Association Mixed Investment 20-60 per cent share sector was its best-selling fund in January, closely followed by Property.
A quartet of multi-manager funds all made the top-20 list, with the Premier Multi Asset Distribution fund appearing in 12th place. This represents a marked improvement in sales compared with October, when the fund was in 19th place.
The £263.17m fund has achieved consistently strong returns and ranks fourth in Morningstar’s charts with a three-year return of 30.64 per cent. Its sister fund, Premier Multi Asset Monthly Income, is doing even better, delivering 30.84 per cent over the same period.
The Premier Multi Asset Distribution fund is headed up by David Hambidge, overall manager for Premier’s Multi Asset range. Its number one holding is the Schroder Income fund, which invests in UK equities.
The total expense ratio on the Multi Asset Distribution fund is 2.15 per cent and the AMC is 1.50 per cent. The initial investment allowed is £1,000 and additional top-ups of £500 are also permitted. The fund is available through an Isa.
Other funds that appear in the Cofunds top 20 are the F&C Multi Manager Navigator Distribution and the Cazenove Multi Manager Diversity funds in 15th and 17th place respectively.
The F&C fund has fallen down the rankings since October, when it cracked the top 10 best-sellers. The Cazenove fund entered the top 10 after achieving a three-year return of 22.36 per cent. The £13.29bn fund is ranked 24th in the 20-60 per cent share sector, according to Morningstar.
The Aberdeen Multi-Manager Cautious Managed fund is 20th in the list.
Adviser view
Philip Stevenson, adviser at Cheshire-based Ark Financial Planning, said: “I see multi-manager funds as the new version of with profits. That product presented a classic multi-asset investment vehicle with added patrols on risk. The problems came in the nineties when investment houses upped equity content to chase more returns and get more business. But the industry has now come up with a viable alternative.”
| Top 5 IMA sectors – Jan 2014 |
1. Mixed Investment 20-60% Shares |
| 2. Property |
| 3. UK Smaller companies |
| 4. UK All companies |
| 5. North America |