Diversification top of the agenda, FundsNetwork sales data reveals

The Global sector claimed the top spot in the sales chart in September, narrowly beating the Mixed Investment 40-85% sector, according to the latest FundsNetwork data.

The Volatility Managed and Mixed Investments 20-60% also saw strong demand, taking third and fifth place respectively. 

This trend suggests that advisers and their clients have been looking for assets that offer either geographical or asset class diversification.

September also saw significant demand for defensive assets as evidenced by the Strategic Bond, Short Term Money Market, Corporate Bond and Global Bonds sectors all featuring in the top ten bestselling sectors for September.

The overall bestselling funds for September underlined the demand for investments that offered diversification benefits with a number of funds from the top ten falling into the global or mixed investment sectors. 

This trend was also broadly reflected in the ISA bestsellers for the month as well as in the FundsNetwork Pension, where there was evidence of some overlap in the top selling funds.

Paul Richards, Head of Sales at FundsNetwork, comments: “It’s clear from September’s sales data that advisers were striving to manage volatility by diversifying clients’ portfolios as much as possible. We can see this from the strong flows into the global, mixed investment and volatility managed sectors as well as into more defensive assets. Geopolitical risks such as Brexit and the US’ relationship with China are likely to continue to fuel volatility in the markets so we do not expect the demand for diversified investments or defensive assets to diminish anytime soon.”

Top 10 adviser sales by sector via FundsNetwork

Rank Sector Name
1 Global
2 Mixed Investment 40-85% Shares
3 Volatility Managed
4 Strategic Bond
5 Mixed Investment 20-60% Shares
6 Short Term Money Market
7 £ Corporate Bond
8 Property
9 Japan
10 Global Bonds

Top 10 adviser sales by fund via FundsNetwork

Rank Fund Name
1 Liontrust Special Situations Fund
2 Vanguard LifeStrategy 60% Equity
3 Fundsmith Equity Fund
4 Artemis Monthly Distribution
5 Vanguard LifeStrategy 40% Equity
6 Artemis Strategic Bond Fund
7 Baillie Gifford American Fund
8 Fidelity South East Asia Fund
9 Baillie Gifford Managed Fund
10 CF Lindsell Train UK Equity Fund

Pension bestsellers through FundsNetwork

Rank Fund Name
1 Liontrust Special Situations Fund
2 Fidelity South East Asia Fund
3 Fundsmith Equity Fund
4 Jupiter European Fund
5 Artemis Strategic Bond Fund
6 Baillie Gifford American Fund
7 Baillie Gifford Managed Fund
8 CF Lindsell Train UK Equity Fund
9 Vanguard LifeStrategy 80% Equity
10 Baillie Gifford Corporate Bond

ISA bestsellers through FundsNetwork

Rank Fund Name
1 Vanguard LifeStrategy 40% Equity
2 Vanguard LifeStrategy 60% Equity
3 Artemis Monthly Distribution
4 Fundsmith Equity Fund
5 Liontrust Special Situations Fund
6 Baillie Gifford American Fund
7 Baillie Gifford Managed Fund
8 Baillie Gifford Corporate Bond
9 CF Lindsell Train UK Equity Fund
10 CIS Sustainable Diversified Trust

Source: FundsNetwork net sales data for September 2018


Notes to Editors:

Fidelity International

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 £231.4bn 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 £81.3bn in assets under administration. Data as at 30 September 2018.

FundsNetwork

FundsNetwork™ is Fidelity International’s UK award winning investment services platform that provides advisers and their clients with access to a range of investment wrappers and over 2950 funds from more than 130 providers. 

Since launching in 2000, FundsNetwork has evolved to become a trusted business partner that strives to make it easier for advisers to do business with their clients. Today, the platform offers a comprehensive range of value added services including fund and portfolio analysis tools, time-saving client management functionality and wide-ranging business management support, including business to business reports, back office integration and the capability to set up an ongoing fee. 

Over the last decade, Fidelity’s UK platform has grown to be one of the largest in the UK, currently administering £81.3 billion in assets as at 30.09.18. Fidelity’s financial strength allows continual investment to develop the platform’s capabilities, underlining the long-term commitment to the advisers that FundsNetwork – the adviser facing part of the platform serves. Fidelity’s UK platform includes all Fidelity’s retail fund assets, retail assets held on Fidelity FundsNetwork and retail and institutional assets held on the Fidelity DC Investment Platform.

For further information, please contact:

Henry Chan    
Fidelity International    
+44 (0) 20 7074 5823    
+44 (0) 7917 001 845 
Henry.Chan@fil.com    

Press Office Address: Fidelity International, 25 Cannon Street, London, EC4M 5TA

Fidelity only offers information on products and services and does not provide investment advice based on individual circumstances, other than when specifically stipulated by an appropriately authorised firm, in a formal communication with the client. 

Fidelity International refers to the group of companies which form the global investment management organisation that provides information on products and services in designated jurisdictions outside of North America. This communication is not directed at, and must not be acted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised for distribution or where no such authorisation is required.

Unless otherwise stated all products and services are provided by Fidelity International, and all views expressed are those of Fidelity International. Fidelity, Fidelity International, the Fidelity International logo and F symbol are registered trademarks of FIL Limited. 

The Key Investor Information Document (KIID) for Fidelity and non-Fidelity funds is available in English and can be obtained from our website at www.fidelity.co.uk/importantinformation or by calling 0800 41 41 61. The  Prospectus for Fidelity funds may also be obtained from Fidelity. For non-Fidelity funds, the KIID and the Prospectus are also available from the fund provider directly. 

Withdrawals from a pension product will not normally be possible until you reach age 55.

Some of the funds mentioned invests in overseas markets and so the value of investments can be affected by changes in currency exchange rates.

There is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. When interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall.

Due to the greater possibility of default an investment in a corporate bond is generally less secure than an investment in government bonds.

Issued by Financial Administration Services Limited, authorised and regulated by the Financial Conduct Authority.

CC18/115