Equities  

UK equity income sector knocks property off top spot

UK equity income sector knocks property off top spot

UK equity income has regained its spot at the top of the Investment Association’s top-selling sectors, knocking property down one place during May.

Whilst the top two swapped, the remaining five sectors showed consistent popularity month on month.

Targeted absolute return, mixed investment 40 to 85 per cent and 20 to 60 per cent shares all kept their positions in third, fourth and fifth place respectively, which Cofunds said was largely due to the more flexible, cautious and multi-asset approach.

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In these sectors, the most popular funds included the Standard Life’s Global Absolute Return Strategies, Invesco’s Global Targeted Return, and Premier’s Multi Asset suite of funds.

Across the platform, the CF Woodford Equity Income fund was the most popular in terms of gross sales during May.

Henderson UK Property remained the most popular direct property fund, followed by M&G’s Feeder of Property, the Aberdeen Property B Trust and Legal and General’s UK Property Feeder.

Cofunds said that elsewhere, global income mandates and strategic bonds also proved popular fund choices in May, for their ability to take a more flexible approach.

Britt Holland-Ellice, head of fund group relations at Cofunds, explained that given current market volatility, it is no surprise to see the prominence of funds that aim to deliver regular, stable returns, predominantly from the lower risk and flexible, multi asset style sectors.

“What’s more, given the profile of the typical UK investor and their broad desire for a stable income and capital growth, one would expect to see the popularity of home market equities, income generating funds and property.

“We expect it will be worth keeping a close eye on the popularity of fixed income funds, and namely the more flexible strategic bonds, especially as we near the point where the US and UK consider raising interest rates.”

ruth.gillbe@ft.com