View more on these topics

Fund outflows continue as investors seek diversity

Investors continued to pull money out of funds in January, according to the Investment Assosication data.

Targeted absolute return topped the worst-selling sector list for the fourth month in a row in January.

Overall, investors continued their cautious sentiment. While investors withdrew slightly less from funds overall than the month before – £859m, compared to £875m in December – some sectors experienced their largest outflows for more than a year.

AJ Bell personal finance analyst Laura Suter notes European equity funds experienced their biggest redemptions for two and a half years.

She says: “Outflows from European equity funds ramped up to their highest level since the ‘Leave’ vote in 2016, with £412m withdrawn from the funds.

“The outflows from UK Corporate Bond funds were the highest in more than three years, at £491m. Instead, investors flooded into strategic bond funds last month, deferring the decision about bond allocation to fund managers, with £801m flowing into the funds – the highest inflows in a year.”

Strategic bond topped the list of the best selling sectors with £801m inflows, followed by by Mixed Investment 20-60% Shares with net retail sales of £424m, and Mixed Investment 40-85% Shares with net retail sales of £217m, as investors are hoping mixed asset strategies will combat a risky macroeconomic environment.

Investment Association chief executive Chris Cummings says: “Dry January extended to the fund markets as savers remained cautious, heralding the fourth consecutive month of net retail outflows. The threat of a no-deal Brexit, Eurozone instability, and international trade tensions, combined to dampen investor appetite with savers looking towards mixed asset funds to spread their risk.”

Recommended

20

UFPLS vs flexi-access drawdown: drawdown wins by a country mile

If there is a straight choice between flexi-access pension drawdown and uncrystallised funds pension lump sum, flexi-access wins by a country mile in virtually every situation. The Treasury prefers to pronounce UFPLS as “uffplus”, presumably because the plus syllable lends a positive quality to this otherwise ridiculous expression. Most pension professionals prefer to pronounce it […]

Top three platforms market study predictions

Orphan clients, fund manager charges and technology suppliers’ capital requirements are all expected to be under the microscope The industry is waiting with bated breath for the FCA’s Investment Platforms Market Study final report. Here are our top three predictions for what will emerge. 1. Rules for orphan client chargingThe FCA is very clear that […]

Investment uncovered: Down the blind alley of chasing short-term sector results

Rick Eling, investment director at Quilter-owned advice network Intrinsic, explains how focusing on factors that can be controlled, such as objectives, provides the best long-term outcomes for clients Do you approach investment management by building portfolios in-house, outsourcing or a combination of both?We have built our investment offering on the basis that the client is […]

Colin Simmons

Blending solutions to provide more income stability

Colin Simmons, Prudential Business Development Manager, writes about greater income stability through blending solutions with a Prudential Trustee Investment Plan (TIP). With the introduction of Pensions Freedom and choice, more advisers have been focusing on, and recommending income drawdown products for retirees. However,  the flexibility provided by no limits for drawdown income creates a problem […]

Newsletter

News and expert analysis straight to your inbox

Sign up
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