PlatformsSep 3 2015

Advisers on the defensive for clients: FundsNetwork

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Advisers on the defensive for clients: FundsNetwork

Advisers have been moving their clients into more defensive asset classes over the past few months, FundsNetwork’s sales data has revealed.

With investor confidence shaken by the Chineses economic crisis in July, the IA UK Equity Income sector retained its top spot in terms of sales conducted over the platform.

However, it did lose some ground to the IA Property sector, which saw a 22 per cent rise in sales over the month.

Pension fund investors were also seeking low-cost, less adventurous funds. Sales within the FundsNetwork Pension showed a rising trend towards low-cost passive solutions.

Net sales into passive investment grew in July, with the Fidelity Index UK Fund taking the top spot.

Danny Wynn, head of funds partners at Fidelity Worldwide Investment, said: “In July, we saw focus quickly shift from concerns over Greece to concerns over China. As evidenced by our sales data, investor sentiment naturally remained cautious, with advisers and their clients continuing to allocate to more defensive assets such as property and multi asset solutions.”

Adviser view

Dean Aitchison, investment manager for Essex-based KMD Private Wealth Management, said: “We have not had any clients call us up about the Chinese crisis, but we have been cautious about China for a while.

“We would not advise selling now. Generally, corrections are at the 10 per cent mark, maybe a bit more, as these corrections can be good buying opportunities.”