Mixed asset funds record best sales since 2014
Mixed asset funds have had their best month for a year as they saw net retail sales of £404m during June, Investment Association statistics have revealed.
They came a narrow second in popularity to the IA Targeted Absolute Return sector, whose funds were the best-selling sector, with net retail sales of £445m.
Daniel Godfrey, chief executive of the IA, said: “Net retail sales held up well in June despite the uncertainty surrounding the Greek bailout and Chinese markets.
“But most striking was mixed-asset funds having their best month since last summer and Targeted Absolute Return funds being the most popular sector as many investors left it to fund managers to decide on asset allocation in uncertain markets.”
Out of the total £1.534bn net retail sales of funds in June 2014, £874m were equity funds (£802m in May).
According to the data, the top net selling sector for June was Targeted Absolute Return with £444.8m, with UK Equity Income second at £437.8m.
Regionally, the UK came top with net retail sales of £491m (£284m June), compared with an average of £12m for the previous 12 months.
However, Asia slipped to -£288m (-£85m June), compared with an average of £50m for the previous 12 months.
Danny Wynn, head of fund partners for Fidelity Worldwide Investments, said the move to multi-asset was part of a defensive approach.
He said: “June continued to see the markets being shaken by concerns over Greece and liquidity issues.
“It is therefore reasonable to see that advisers and their clients maintained a defensive stance in the month, as evidenced by our sales trends.”
| Month 2015 | Total | Equity | Fixed income | Money market | Mixed asset |
| Jun | £1,534m | £874m | £-198m | £41m | £404m |
| May | £1,535m | £802m | £-162m | £35m | £140m |
| April | £1,702m | £-92m | £329m | £258m | £173m |
Source: Investment Association
Adviser view
Patrick Connolly, chartered financial planner of Bath-based Ifa Chase de Vere, said: “The numbers reflect the general sentiment that investors have at the moment with a lot of nervousness about, so there is no surprise at the large sales going to targeted absolute return and mixed assets.
“The equities stats show there is still some interest in Europe and Japan, which have done relatively well, and investors appreciate central bankers in those areas are more accommodative than elsewhere.
“I think the UK figure is a bit of an anomaly as I believe it reflects a lot of money being switched into Woodford funds.”
