Income Leads The Charge

by | Feb 13, 2015

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Income generating products are top of the agenda for most advisers says a new market intelligence report.

They feature heavily in a most viewed funds list which has been produced by Square Mile Investment Consulting & Research (Square Mile). The report looked at trends within funds, asset classes and sectors based on the viewing patterns of 900 registered users of the Academy of Funds in the fourth quarter of 2014.

The report also identified a heavy income bias, with six of the top ten being income-oriented products and income generation the most popular search term.

Managing Director at Square Mile Richard Romer-Lee said: “We believe the search for income is largely explained by the impending changes to the retirement market, with advisers seeking alternative income-generating solutions for their clients.

“We believe the search for capital preservation is led by investors who have accumulated wealth and are now seeking a different symmetry of risk, protecting their capital and where possible maintaining or improving their buying power and standard of living.”

“The increasing popularity of investment boutiques perhaps points to advisers looking outside the more obvious names in asset management to supplement client portfolios, providing diversity and demonstrating the added-value of recognising compelling alternatives foo.”

The report’s other main findings include:

  • Newton Asian Income fund and Newton Real Return were the most viewed funds; Newton & BNY Mellon Asset Management was the most popular group;
  • equities were the most popular asset class, accounting for 58% of views, followed by Fixed Income 21% and Multi Asset 18%;
  • sterling strategic bond sector led the searches by IA sector; in a response to the current low yield environment and heightened uncertainty surrounding interest rates;
  • least popular investment outcome was inflation protection, reflecting expectations for subdued inflation over the foreseeable future;
  • while big names dominate, boutiques are growing in interest with Somerset Capital Management and Saracen Fund Managers both registering an increase in interest over the period.

 

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