31st August 2016
FundsNetwork: Money Markets continue to dominate sales post Brexit
The Short Term Money Market and UK Money Market sectors continued to lead the sales charts in July as post Brexit uncertainty rocked investor confidence, the latest FundsNetworkTM data shows.
A similar trend was evident in the overall fund sales, with three cash funds appearing in bestsellers list for July. There was also a strong showing for funds that adopted a more diverse investment strategy, be it geographically or across asset classes, with funds such as Invesco Perpetual Global Targeted Returns and the Fundsmith Equity fund having a strong month.
Interestingly, this month saw only one pure equity sector make it into the top ten, which was unusual given how the equity sector has traditionally dominated the UK retail investing landscape.
In the FundsNetwork Pension, investors maintained a strategic approach to fund selection and continued to spread their investments across a range of asset classes and geographical regions.
ISA investors on the other hand appeared to focus on more defensive, income yielding investments, with half of the bestselling ISA funds in July offering some type of income.
Danny Wynn, Head of Fund Partners for Fidelity International, comments: “As investors started to digest what Brexit meant for them and their investments, we continued to see investors adopting a defensive position and favour cash instruments or seek to add some diversification to their portfolios. With further uncertainty on the horizon, especially in the form of the US elections, it’s likely we are going to see this trend being maintained over the coming months.
“One very interesting observation to note from July’s data is that Japan was the only equity sector to make it into the bestsellers list. One reason for this is that advisers may be looking to secure capital gains from the renewed commitment to Abenomics and the continuation of monetary stimulus in that economy. However, with fresh questions being raised over whether Abenomics will work, it will be interesting to see whether Japan can maintain its position as the stand-alone equity sector in the sales charts.”
Top 10 adviser sales by sector via FundsNetwork
|
Rank |
Sector Name |
|
1 |
Short Term Money Market |
|
2 |
UK Money Market |
|
3 |
UK Index Linked Gilts |
|
4 |
Targeted Absolute Return |
|
5 |
£ Corporate Bond |
|
6 |
Mixed Investment 0-35% Shares |
|
7 |
Global Bonds |
|
8 |
UK Gilts |
|
9 |
Japan |
|
10 |
Mixed Investment 40-85% Shares |
Top 10 adviser sales by fund via FundsNetwork
|
Rank |
Fund Name |
|
1 |
Fidelity Cash |
|
2 |
Invesco Perpetual Global Targeted Returns |
|
3 |
BlackRock Cash Fund |
|
4 |
Fundsmith Equity Fund |
|
5 |
Standard Life SIPP Cash |
|
6 |
L&G All Stocks Index Linked Gilt Index Trust |
|
7 |
Old Mutual UK Mid Cap Fund |
|
8 |
M&G Index-Linked Bond Fund |
|
9 |
CF Lindsell Train UK Equity Fund |
|
10 |
Vanguard LifeStrategy 40% Equity |
Pension bestsellers through FundsNetwork
|
Rank |
Fund Name |
|
1 |
Invesco Perpetual Global Targeted Returns |
|
2 |
Old Mutual UK Mid Cap Fund |
|
3 |
L&G All Stocks Index Linked Gilt Index Trust |
|
4 |
M&G Index-Linked Bond Fund |
|
5 |
Jupiter India Fund |
|
6 |
Artemis European Opportunities |
|
7 |
Vanguard LifeStrategy 40% Equity |
|
8 |
Fidelity Index Japan |
|
9 |
Franklin UK Equity Income |
|
10 |
Marlborough UK Micro-Cap Growth |
ISA bestsellers through FundsNetwork
|
Rank |
Fund Name |
|
1 |
BlackRock Cash Fund Class |
|
2 |
Invesco Perpetual Global Targeted Returns |
|
3 |
Fundsmith Equity Fund |
|
4 |
L&G All Stocks Index Linked Gilt Index Trust |
|
5 |
M&G Index-Linked Bond Fund |
|
6 |
Premier Multi-Asset Distribution |
|
7 |
Old Mutual UK Mid Cap Fund |
|
8 |
Jupiter Distribution Fund |
|
9 |
CF Woodford Equity Income Fund |
|
10 |
Vanguard FTSE U.K All Share Index UT |
Source: FundsNetwork net sales data for July 2016, August 2016.
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