‘Vodafone effect’ helping sales of income funds this Isa season says Willis Owen

7th March 2014

Discount broker Willis Owen says that three of top five best selling funds this Isa season are income funds. The firm suggests that investors may be using the cash windfall from Vodafone.

Jason Chapman, managing director at Willis Owen, says: “Three of our top five best-selling funds in January were income funds, and we’d expect to see interest in them remain strong – not least because of the ‘Vodafone effect’. With the sale of Vodafone to Verizon, many of their investors now have a cash windfall in their pockets and are on the lookout for new income funds to call home.

“We know that for investors, choosing between growth and income is a crucial question – and the answer will largely be based on their time frame. If more immediate income is the priority, the most popular forms of income investment are bonds and cash. They pay a regular, consistent rate of interest either annually, twice or four times a year. Another option for income seekers over a longer time horizon is shares in the form of dividends, with many equity funds set up with the aim of generating a stable income.

“Deciding between immediate income or medium-term growth is an important choice, and through our Play Space tool anyone can build a fantasy portfolio and track it over time to get a sense of how different options might perform in the real world. Whatever people do decide, we urge them to make the most of their tax-free ISA allowance before the door shuts at the end of the tax year.”

Willis Owen’s top selling funds in January 2014

1. Artemis Income I Fund
2. GAM Star Technology I Fund GBP
3. Invesco Perpetual High Income Z Fund
4. Invesco Perpetual Income Z Fund
5. Jupiter Merlin Balanced Portfolio I Fund

Willis Owen’s top selling sectors in January 2014

1. UK Equity Income
2. UK All Companies
3. UK Smaller Companies
4. Global
5. Europe Excluding UK

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