Defensive assets continue to sell; FundsNetwork sales data reveals

It was another consecutive win for the Global sector, which for the second month in a row was the bestselling sector ahead of the Volatility Managed and Mixed Investment sectors, according to the latest data from FundsNetwork.

The Volatility Managed sector retained its second place, whilst the Mixed Investment 20-60% Shares sector was replaced in third place by the Mixed Investment 40-85% Shares sector.

These latest trends show a continued emphasis on diversification, be it by geography or asset class, in light of recent market volatility and demonstrates clients and their advisers’ preference for lower risk assets. 

North America being fourth in terms of sales gives further weight to a more cautious outlook from advisers and their clients. The US is favoured due to its strong overall performance over the quarter, and its reputation as a historically defensive market makes it an attractive one. 

The FundsNetwork Pension and ISA bestsellers for the month also showed how funds that offer asset class or geographical diversification were the preferred choice in October. 

Paul Richards, Head of Sales at FundsNetwork, comments: “The markets faced significant headwinds in October, with uncertainty over Brexit and fears of US trade wars with China continuing, so it is unsurprising to see strong flows into more defensive assets in last month’s sales data. 

“We continue to see advisers and their clients allocating towards strategies that aim to manage and mitigate volatility.”

Top 10 adviser sales by sector via FundsNetwork

Rank Sector Name
1 Global
2 Volatility Managed
3 Mixed Investment 40-85% Shares
4 North America
5 Mixed Investment 20-60% Shares
6 Property
7 £ Corporate Bond
8 Global Bonds
9 Asia Pacific Excluding Japan
10 Europe Excluding UK

Top 10 adviser sales by fund via FundsNetwork

Rank Fund Name
1 Vanguard LifeStrategy 40% Equity
2 Baillie Gifford American A Acc
3 LF Lindsell Train UK Equity Fund
4 Vanguard LifeStrategy 60% Equity
5 Fidelity Index UK Fund
6 Fundsmith Equity
7 Artemis Monthly Distribution Fund
8 Vanguard LifeStrategy 80% Equity Fund 
9 Baillie Gifford Managed Fund
10 Lindsell Train Global Equity Fund

Pension bestsellers through FundsNetwork

Rank Fund Name
1 Vanguard LifeStrategy 40% Equity Fund
2 LF Lindsell Train UK Equity Fund
3 Jupiter European Fund Inc
4 Fundsmith Equity 
5 Fidelity Index UK Fund
6 Baillie Gifford American A Acc
7 Baillie Gifford Managed Fund
8 Artemis Strategic Bond
9 Vanguard FTSE Developed World EX UK Equity
10 CFP SDL UK Buffettology Fund

ISA bestsellers through FundsNetwork

Rank Fund Name
1 Vanguard LifeStrategy 40% Equity 
2 Artemis Monthly Distribution Fund
3 Baillie Gifford American A Acc
4 LF Lindsell Train UK Equity Fund
5 Baillie Gifford Managed
6 Vanguard LifeStrategy 60% Equity Fund
7 Fundsmith Equity
8 Royal London Cash Plus Fund
9 Lindsell Tran Global Equity Fund 
10 Legal & General Multi-Index 4 Fund

Source: FundsNetwork net sales data for October 2018


Notes to Editors:

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