View more on these topics

Adviser Fund IndexAmerican accent

Panellists’ preference for American over British equities was most noticeable in the Balanced index, during the May Adviser Fund Index rebalancing.

Panellists’ preference for American over British equities was most noticeable in the Balanced index, during the May Adviser Fund Index rebalancing.

Exposure to British stocks fell by six percentage points to just 34 per cent. The move allowed the panel of 19 to increase its American equity allocation by half, from 6 per cent to 9 per cent.

Part of this rise came from the addition of two new American funds – M&G American and BlackRock US dynamic, which were chosen by one and two panellists respectively.

However, there were also increased allocations for previously selected funds and Tom Walker’s Martin Currie North American portfolio, chosen by three advisers, remains the most popular American fund in the Balanced index.

The total number of selections for the fund was down from four last November but the £360m portfolio was given a bigger overall weighting in May.

This helped offset the removal of Old Mutual North American equity, Threadneedle American select and UBS US 130/30 equity, all of which were ejected by single advisers in both the Balanced and Aggressive indices.

The British allocation was hit by the departure of several previously popular funds. According to Financial Express, four of the five highest-ranked funds ejected are focused on British equities – BlackRock UK, Investec UK special situations, Neptune UK equity and Norwich UK special situations. All four funds were also removed from the Aggressive index.

The allocation to property funds continued its decline, following one and two percentage point reductions in 2007.

Norwich property and Schroder global property securities were ejected from the index in May, by one and two panellists respectively.

M&G’s £900m property portfolio also fell out of favour with two advisers but retained its place in the index with one selection. Property exposure was boosted slightly by the arrival of Insight’s £340m diversified target return fund.

The multi-asset Insight portfolio, which originally joined the AFI in November 2006 before being ejected 12 months later, had a 6 per cent property weighting in April.

Its selection ended Insight’s six-month absence from the AFI. Lazard, which lost four funds last November, also rejoined the AFI after its £380m emerging markets portfolio was chosen for the Aggressive, Balanced and Cautious indices by single advisers.

The Balanced index’s property allocation fell by one percentage point but its fixed income weighting rose by the same amount.

Baring directional global bond, Invesco Perpetual global bond, L&G dynamic bond, M&G optimal income and New Star high-yield bond were among the new arrivals.

However, several bond funds left the benchmark after they were removed by one adviser. Aegon Global Bond lost the support of two panellists, but remained in the index thanks to one selection.

There were 23 new additions to the Balanced AFI overall, with 28 ejections causing the total number of constituents to fall from 115 to 110.

Recommended

Investec gains as lenders quit HNW sector

Investec Private Bank has increased its mortgage lending by 45 per cent in the last year despite the credit crunch.The high-net-worth lender says it is seeing an upturn in business as many high-street lenders retreat from the market. Business through introducers, including brokers, IFAs, accountants and solicitors, accounts for around half of its private-client lending […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com