Investments  

Fixed income a favourite among advisers: iShares

The head of sales for iShares said advisers in the UK had shown a “thirst for yield” at the tail end of 2013, with more than £59m in new inflows coming into its ETFs on platforms over the fourth quarter last year.

He said: “We are encouraged that more advisers are using ETFs to express their allocation views on bonds as well as equities.

“This traction is the result of advisers becoming more familiar with ETFs over the past few years.”

Article continues after advert

He said while the RDR was “certainly a catalyst for growth”, he also believed that more education and information about the use of ETFs within portfolios was helping, as well as more platforms putting ETFs into the product mix.

According to figures from iShares, its assets on 27 UK wraps and platforms has risen 87 per cent over the past three years, with two of its funds - the iShares £ Corporate Bond 1 to 5 year Ucits ETF gaining £39m in inflows by the end of December 2013, while the iShares £ Corporate Bond Ucits ETF gathered £15m in new money over the time.

Mr Johnson said the largest increases recorded on Novia and Ascentric.

Background

Ian Taylor, chief executive of adviser-backed wrap Transact, said he agreed that more advisers were using ETFs on platform. He said: “ETFs are fast becoming one of the standard tools used by financial advisers in the UK”.

He added that while sterling bond funds were “often popular” on the platform, he had seen an “uptick of interest in European equities”, which suggests financial advisers may now be more optimistic in their outlook.

Key figure

£59m: inflows coming into ETFs for Q4, 2013