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Woodford and GARS funds lead investor rush to defensive assets

Woodford Neil WIM

Investors having been buying increasingly defensive funds, with multi-asset funds seeing a surge of interest in June, according to FundsNetwork.

Data from the platform shows that demand for multi-asset funds continued to grow last month, with Targeted Absolute Returns and the three Mixed Investment sectors being the third, fourth, fifth and sixth most popular sectors for the month.

The UK Equity Income and Property sectors were the most popular.

Fidelity Worldwide Investment head of fund partners Danny Wynn says: “June continued to see the markets being shaken by concerns over Greece and liquidity issues. It’s therefore reasonable to see that advisers and their clients maintained a defensive stance in the month, as evidenced by our sales trends.”

Investors’ defensive stance was reflected in fund sales for both pensions and Isas, with Woodford’s Equity Income and Standard Life Investments’ GARS funds topping the most popular funds list.

The defensive position is expected to continue next month, says Wynn, as China’s stockmarket continues to fluctuate and concerns remain about liquidity in the markets.

“As a result we can expect continued investor caution and further flows into defensive assets such as equity income, property and multi asset funds over fixed income funds,” he says.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. GARS volatility: 3. Woodford’s volatility: 9. Also Woodford openly states he will ignore market volatility and only focus on long term fundamentals. So I don’t think Woodford’s inflows are linked to being defensive.

  2. jonathan gamlin 28th July 2015 at 6:36 pm

    Absolutely , since when has Equity Income been truly defensive !

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