UK investors get defensive when it comes to funds

27th November 2015


UK investors are still ploughing money into equity income funds but there is growing demand for safe haven assets.


Sales data from fund supermarket FundsNetwork shows the UK Equity Income and Property sectors continued to assert their dominance in October.


And while there was no change in the top two selling sectors, the fund platform did see the Short Term Money Market gain traction suggesting there is ongoing demand for safe haven assets.


The shuffling of money was also evident in the bestselling funds data, which saw significant turnover in October compared to the previous month, although a few stalwarts, such as Woodford Equity Income fund, retained their places.


Danny Wynn, head of fund partners at FundsNetwork parent company Fidelity, said: ‘October saw many of the major global indices having their best month in years. Yet despite this, many investors continued to favour defensive assets, which is unsurprising given the extended bouts of volatility they had to endure in previous months.’


However, Wynn said he also saw evidence of confidence returning, particulary as China ‘showed signs that it genuinely is rebalancing rather than suffering a hard landing’.


‘This was evident by the Emerging Markets sector featuring in the top 10 bestselling sectors in October,’ said Wynn.


‘One other interesting observation from October’s sales data was that there were three passive funds appearing in the bestsellers list, up from one last month, within the FundsNetwork Pension. After one month we can’t call this a trend but it will be interesting to see if this is a theme that develops in the medium term.’


Top 10 funds purchases in October

1. Woodford Equity Income

2. BlackRock Cash Fund

3. Premier Multi-Asset Distribution

4. Artemis Global Income Fund

5. Henderson Strategic Bond Fund

6. Fidelity Emerging Markets Funds

7. Henderson UK Property Unit Trust

8. FundSmith Equity Fund

9. Kames Ethical Cautious Managed

10. Invesco Perpetual Global Targeted Returns


10 top best selling sectors

1. UK Equity Income

2. Property

3. Short Term Money Market

4. North America

5. Mixed Investment 40-85% Shares

6. Global Equity Income

7. Mixed Investment 0-35% Shares

8. Global Emerging Markets

9. European exc. UK

10. Japan

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