UK All Company sector a big hit with IFAs

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UK All Company sector a big hit with IFAs

Advisers have been bucking wider retail investment trends this year with the Investment Association’s UK All Company sector the most popular among IFAs.

An FE Analytics study has found that while it had been one of the least popular IA sectors in terms of total net retail sales from January to July, it had been the most researched and added to portfolios by IFAs.

Advisers have also been buying the IA Global Sector, IA Property sector and IA Sterling Strategic sector over the same period.

Fund groups most bought by the advisers have been Invesco Perpetual, M&G, Schroders and Standard Life.

Two of these were also among those seeing the most outflows: Invesco Perpetual, M&G, Schroder and Jupiter, according to the report.

Investors from the wider market, according to IA data, have piled the most money into the Absolute Return, UK Equity Income and Europe excluding UK sectors from January to July.

Net retail numbers from IA also showed the UK Smaller Companies and Protected sectors were the least favoured sectors.

According to its website, FE Analytics is used by 70 per cent of the top 100 adviser firms, and more than 30 per cent of advisers nationally.

Adviser View

Bob Wilson, financial adviser at Norfolk-based Greensky Wealth, said: “This is not surprising, we like the UK All Company sector, and also UK and US smallers, and are avoiding FTSE100 firms. It is a sign that the IFA industry knows what they are doing – we are in recovery and expansion phase of the economic cycle and equities are looking attractive. The use of Global and Property sectors also makes sense.”