Advisers go global in hunt for income
Emerging Markets sectors soared in popularity in October, with six funds with high exposure to these markets in the top 50 according to the latest sales trends information from Cofunds, the leading independent platform for financial planning.
Emerging Markets funds, spread over Global Emerging Markets, Specialist and Global Bonds, enjoyed favour with advisers in October, with the Global Emerging Markets sector climbing to account for 6 per cent of net sales, compared to the 4 per cent it has accounted for year to date. Aberdeen Emerging Markets forged the way as eighth highest selling fund.
Cautious Managed maintained its spot at the top of the sales charts with four out of the five top selling funds in the sector, accounting for 31 per cent of net sales (see table below).
| October 2010 Net Sales | |
| 1 | SL Investments Global Absolute Return Strategy |
| 2 | Henderson Multi Manager Income & Growth |
| 3 | Thames River Distribution |
| 4 | Jupiter Merlin Income Portfolio |
| 5 | Henderson Multi Manger Distribution |
| 6 | Invesco Perpetual Monthly Income |
| 7 | Aviva Cautious Fund of Funds |
| 8 | Aberdeen Emerging Markets |
| 9 | M&G Strategic Corporate Bond |
| 10 | Invesco Perpetual Distribution |
| 11 | M&G Optimal Income |
| 12 | Newton Global Higher Income |
| 13 | Legal & General Dynamic Bond |
| 14 | Newton Real Return |
| 15 | M&G Recovery |
| 16 | Jupiter Merlin Balanced Portfolio |
| 17 | Artemis Income |
| 18 | Aberdeen Multi Manager Cautious Managed |
| 19 | First State Global Emerging Markets Lead |
| 20 | First State Asia Pacific Leaders |
October also saw UK Equity Income funds’ popularity dip as the sector accounted for 8 per cent gross sales but only 1 per cent net sales.
Michelle Woodburn, Manager, Fund Group Relations at Cofunds said: “October saw a strong theme emerging with global sectors experiencing a healthy level of adviser interest. With UK Equity Income (and Income & Growth) both accounting for lower than usual net sales figures, the indication is that some funds in these sectors are seeing relatively high levels of redemptions. Instead, figures indicate that advisers are seeking income, in part, from the global arena, with funds such as M&G Global Dividends and Newton Global Higher Income having enjoyed popularity.”