Strategic bonds sales soar, FundsNetwork data reveals

The Strategic Bond sector soared to the top of the sales table in May, according to the latest FundsNetwork data.

Taking the remaining podium places were the Global and Volatility Managed sectors which took second and third place respectively.

The Mixed Investment 40-85% Shares and Mixed Investment 20-60% Shares sectors, which have dominated the sales charts in recent months, fell to fourth place and sixth place.

Meanwhile, US equities continued to see strong demand with the North America sector holding on to its fifth spot in May.

The overall bestselling funds for May underlined the demand for strategic bonds with the top two bestselling funds from the month belonging in this sector. This trend also reflected amongst ISA investors.

In the FundsNetwork Pension there was a much broader mix of funds covering a variety of geographical regions, asset classes and investment approaches.

Paul Richards, Head of Sales at FundsNetwork, comments: “Our sales data suggests that adviser sentiment had become increasingly cautious over the course of May, as evidenced by the strong flows into investments within the Strategic Bond and Volatility Managed sectors.

“Diversification of clients’ portfolios also continued to be a major priority for advisers as underlined by the ongoing popularity of assets within the Global and Mixed Investment sectors.

“2018 is proving to be a tricky year for investors to navigate so far. There are many reasons to suggest that there may be more volatility to come and so it’s likely that advisers will continue to de-risk client portfolios. As such, we expect that defensive assets or those that offer diversification benefits will continue to remain in high demand.”

Top 10 adviser sales by sector via FundsNetwork

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

Top 10 adviser sales by fund via FundsNetwork

Rank Fund Name
1 Henderson Strategic Bond Fund
2 Kames Strategic Bond Fund
3 CF Lindsell Train UK Equity Fund
4 Dodge & Cox Worldwide US Stock
5 Vanguard LifeStrategy 60% Equity
6 Baillie Gifford American Fund
7 Invesco Perpetual European Equity
8 Newton Global Dynamic Bond
9 Jupiter Strategic Bond Fund
10 Vanguard U.S. Equity Index

Pension bestsellers through FundsNetwork

Rank Fund Name
1 CF Lindsell Train UK Equity Fund
2 HSBC World Index Balanced Portfolio
3 Vanguard U.S. Equity Index
4 Henderson Strategic Bond Fund
5 Fundsmith Equity Fund
6 Baillie Gifford American Fund
7 Dodge & Cox Worldwide US Stock
8 JPM Multi-Asset Macro
9 Old Mutual UK Mid Cap Fund
10 Baillie Gifford Japanese Fund

ISA bestsellers through FundsNetwork

Rank Fund Name
1 Henderson Strategic Bond Fund
2 Kames Strategic Bond Fund
3 CF Lindsell Train UK Equity Fund
4 Artemis Monthly Distribution
5 Baillie Gifford American Fund
6 Dodge & Cox Worldwide US Stock
7 Fundsmith Equity Fund
8 Jupiter Strategic Bond Fund
9 Baillie Gifford Managed Fund
10 Vanguard LifeStrategy 60% Equity

Source: FundsNetwork net sales data for May 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 £75.7bn in assets under administration. Data as at 31 March 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 £77.4 billion in assets as at 31.12.17. 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

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