Property funds remain most popular choice

Property funds remain most popular choice

Property and UK equity income were the two highest-selling IMA sectors last month as advisers placed client money into these sectors using the Cofunds platform.

Although property retains the top spot, Cofunds said it had seen a slowdown in sales during the first few months of 2015, while money market funds had fallen out of the top five.

The third most popular sector was targeted absolute return, with mixed investment 40-85 per cent shares fourth, and mixed investment 20-60 per cent shares fifth.

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Britt Holland-Ellice, head of fund group relations at Cofunds, said: “As we now settle into a post-election, Conservative-majority Britain, we will be interested to see if market uncertainty and the desire for a stable and predictable return continue.”

She said that, with property and UK equity income seeing reduced levels of net sales, it may be too early to tell whether this was an emerging trend or just the result of what appeared to be a fairly lacklustre Isa season, market uncertainty and pre-election nerves.

Ms Holland-Ellice added: “With at least one of these now resolved we will hope for a more upbeat May. Also, price is increasingly important, as demonstrated by the current popularity of index funds.”

IMA sector leader board
2UK Equity Income
3Targeted Absolute Return
4Mixed Investment 40%-85% shares
5Mixed Investment 20%-60% shares

Source: Cofunds

Adviser view

Colin Sutton, wealth planner for national advisory firm Sanlam, said investing in property was sometimes seen as a safe haven. He said: “Although British households are upbeat in terms of their finances, it is concerning that they are pessimistic about the next 12 months. This could be attributed to the outcome of the general election as people anticipate further legislative changes.”