Advisers increase search for inflation protection funds

Advisers increase search for inflation protection funds

The number of advisers searching for inflation protection as an investment outcome rose nearly three percentage points in the past six months, according to Square Mile’s latest market intelligence report.

Some 17 per cent of advisers searched for inflation protection in Square Mile’s academy of funds in the first three months of this year, an increase from 15 per cent in the last quarter of 2021.

The most researched fund with this investment outcome was BNY Mellon’s Long Term Global Equity.

Most Viewed Active Funds 

Baillie Gifford Multi Asset Growth 

Aegon Diversified Monthly Income

T. Rowe Price Global Focused Growth Equity C Acc

Source: Square Mile

The rate of inflation has soared in recent months, hitting a 30-year high of 7 per cent in March.

Inflation has now surged ahead of the Bank of England’s 2 per cent target each month since May last year.

In March the central bank increased interest rates to 0.75 per cent in an attempt to curb rising prices.

Most Viewed Passive Funds

iShares UK Equity Index

Vanguard LifeStrategy 80%

Vanguard LifeStrategy 60%

Source: Square Mile

Capital accumulation was the most-searched outcome in the period, with 45 per cent of views, and interest in ESG funds rose from 21 per cent to 43 per cent.

Within the responsible investment funds category, the Royal London Sustainable World Trust was the most popular with 12 per cent of all views, followed by the FSSA Greater China Growth fund, FSSA Asia Focus fund, Threadneedle UK Social Bond fund and Liontrust Sustainable Future Managed fund. 

Overall, First Sentier was the most popular fund group in the quarter, followed by Baillie Gifford and Schroders.

Income-oriented outcome searches fell considerably, from 33 per cent to 23 per cent.

Most Viewed Responsible Funds

Royal London Sustainable World Trust

FSSA Greater China Growth

FSSA Asia Focus

Source: Square Mile

Jock Glover, strategic relationships director at Square Mile, said the global backdrop has created the perfect storm for markets, as inflation and interest rates continued to rise, weak supply chains increased demand for goods, along with elevated energy prices and the geopolitical and humanitarian crisis unfolding in Ukraine. 

“Against this backdrop, it is perhaps unsurprising that over the first quarter of the year, we continued to see an increased number of users search for the inflation protection outcome on the academy of funds," he said.