Advisers diversify to guard against market volatility, latest FundsNetwork sales data reveals

Diversification remains a key strategy for advisers in the face of volatile markets, according to the latest sales data from FundsNetwork.

The Global sector held onto its position as the bestselling during May, continuing a trend seen for much of the past year. Fidelity Cash Fund moved into first-place as the bestselling fund overall followed by the Investec Diversified Income Fund - also the most popular ISA and Pension fund, reflecting that diversification is the preferred long-term investment approach

Analysis from NextWealth, on behalf of FundsNetwork, recently revealed that of the 75% of advisers concerned about business challenges in the future, a quarter (25%) are worried about political and economic uncertainty and the impact this may have upon investor behaviour and sentiment.*

Paul Richards, Head of Sales at FundsNetwork, comments: "Our latest sales figures suggest advisers are seeking to navigate volatile markets through diversification, considering a range of opportunities and investment types to support clients in achieving their financial goals.

"Investors are increasingly looking at how they can build portfolios which generate returns, while aligning with their values. Funds which have been developed based upon ESG principles allow them to do just that, and as our data shows, are growing in popularity."

Top 10 adviser sales by sector via FundsNetwork

Rank Sector Name
1 Global
2 Short Term Money Market
3 Mixed Investment 0-35% Shares
4 Mixed Investment 40-85% Shares
5 Volatility Managed
6 £ Strategic Bond
7 Mixed Investment 20-60% Shares
8 Global Bonds
9 UK Gilts
10 Global Emerging Markets Bond

Top 10 adviser sales by fund via FundsNetwork

Rank Fund Name
1 Fidelity Cash Fund
2 Investec Diversified Income Fund
3 Royal London Short Duration Credit Fund
4 LF Lindsell Train UK Equity Fund
5 CFP SDL UK Buffettology Fund
6 Vanguard LifeStrategy 40% Equity Fund
7 Fundsmith Equity
8 Liontrust Sustainable Future Global Growth Fund
9 Fidelity Index Japan Fund
10 Vanguard LifeStrategy 60% Equity Fund

Pension bestsellers through FundsNetwork

Rank Fund Name
1 Investec Diversified Income Fund
2 Royal London Short Duration Credit Fund
3 Fundsmith Equity
4 LF Lindsell Train UK Equity Fund
5 Liontrust Sustainable Future Global Growth Fund
6 CFP SDL UK Buffettology Fund
7 Fidelity Index Japan Fund
8 Vanguard LifeStrategy 40% Equity Fund
9 HSBC FTSE All World Index Fund
10 Legal & General Short Dated Sterling Corporate Bond Index

ISA bestsellers through FundsNetwork

Rank Fund Name
1 Investec Diversified Income Fund
2 Royal London Short Duration Credit Fund
3 LF Lindsell Train UK Equity Fund
4 Fidelity Cash Fund
5 CFP SDL UK Buffettology Fund
6 Liontrust Sustainable Future Global Growth Fund
7 Fundsmith Equity
8 Vanguard LifeStrategy 40% Equity Fund
9 Fidelity Index Japan Fund
10 Vanguard LifeStrategy 60% Equity Fund

Source: FundsNetwork net sales data for May 2019


For further information, please contact:

Emma Beresford
Fidelity International
0203 986 2004
07730 594806
Emma.Beresford@fil.com
Ariella Levine
Fidelity International
020 7961 4575
07798893617
Ariella.Levine@fil.com

Notes to Editors:

* The research, ‘Business Challenges facing financial advisers,’ surveyed 206 advisers asking them what they consider to be the biggest business obstacles for their industry. Research conducted by NextWealth, December 2018.

About Fidelity

Fidelity International offers world class investment solutions and retirement expertise. As a privately owned, independent company, investment is our only business. We are driven by the needs of our clients, not by shareholders. Our vision is to deliver innovative client solutions for a better future. We invest £235.5bn globally on behalf of clients in 26 countries across Asia-Pacific, Europe, the Middle East, and South America. Our clients range from central banks, sovereign wealth funds, large corporates, financial institutions, insurers and wealth managers, to private individuals. In addition to asset management, we offer investment administration and guidance for employer benefit schemes, advisers and individuals in several countries. We are responsible for £81.7bn in assets under administration. Data as at 31 March 2019.

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FundsNetwork™ is Fidelity International’s adviser platform that provides advisers and their clients with access to a range of investment related services.

Launched in 2000, we have almost 20 years’ experience of helping independent financial advisers run efficient and profitable businesses, while serving the needs of their clients. We are committed to improving client experience at every stage of the advice process, through the development of a platform which offers flexibility and efficiency to support their changing needs.

The system, developed with Bravura Solutions, provides advisers with access to a broad set of product wrappers and investments, as well as enhanced administrative services. These include;

  • Investments – over 5,000 assets from over 200 partners including Fidelity
    • Funds – 3,557 funds (unit trusts, OEICs & SICAVs)
    • Exchange Traded Products – 279 options
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    • Shares – the ability to invest in shares from the FTSE100, FTSE250, FTSE All-Share and FTSE AIM 100 and some shares from the ISEQ20 – 1,032 options
  • Pension
  • ISA and Junior ISA
  • Investment Account
  • Pension trustee, Company and Trusts accounts
  • Cash Management Account – allowing clients to hold cash outside of product wrappers
  • International Bond – provided by Canada Life and giving access to platform fund range
  • Tax and trust planning – including Bare Gift Trust, Bare Loan Trust, Discretionary Gift Trust, Excluded Property Trust and Discretionary Loan Trust
  • Evolution and Estate Planning Bonds – provided by Utmost Ltd and giving access to our platform fund range
  • Regular Withdrawal Plan – monthly, quarterly, semi-annual or annual payments available
  • Model Portfolios and DFMs – advisers can create bespoke portfolios of up to 30 funds and use defined models where discretionary permissions exist

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