Skandia platform sees sales of UK equities jump

UK equities accounted for 19 per cent of total sales and a third of all equities sales on Skandia’s platform in the third quarter of 2013.

James Millard, director of investments at Skandia, said the swing reflected the strong performance of UK equities, in particular the more domestic orientated FTSE 250 that has delivered 26.5 per cent over the last year.

While the popularity of UK equities is on the rise, it was still multi-asset funds that dominated net sales on Skandia’s Investment Solutions platform, as the trend for outsourcing continues.

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Multi-asset funds accounted for nearly a third (31 per cent) of total sales this quarter and have seen an increase in share of sales of more than 25 per cent since the second quarter.

They are at their highest share of flows so far this year.

In contrast, flows into UK fixed interest and cash have sharply declined.

UK fixed interest funds dropped from the third most popular asset class at the second quarter to the sixth now.

Mr Millard said: “The rising popularity of UK equities as an asset class is a clear sign that investors are shifting exposures on seeing more positive signs of economic growth such as 0.7 per cent growth in GDP for the second quarter.

“Expansion is clearly visible within the services, industrial and construction sectors, while business and consumer confidence also continues to improve. As a result investor confidence is returning and fixed interest fund sales have dramatically reduced.

“Investors are still favouring outsourced multi-asset funds as they look to diversify their portfolios with professional expertise. This again demonstrates the desire to invest, but in a risk-controlled manner to ensure diversification and manage volatility.”