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10/01

Multi-asset funds dominate sales in 2013

Multi-asset funds were the top selling asset class for the vast majority of 2013, according to sales figures from the Skandia Investment Solutions platform.

On average nearly 30% of sales each month went into multi-asset funds last year, as the trend for outsourcing investments post RDR continues.  This was followed by UK equity funds that had on average 18% of monthly sales. The popularity of UK equities steadily increased over the year following a decline in sales in February. This is likely to be a response to the improving UK market conditions; their popularity peaked in November, when they overtook multi-asset funds as the top selling asset class.

In contrast, UK fixed interest funds witnessed a slump in attractiveness this year. However, there was a surge in sales in May as people searched for income through sterling bonds. On average they accounted for 8% of sales each month.  

Cash was the least popular asset class over the year and averaged -0.9% of sales. This is likely to be a result of the boosted investor confidence and the consequent drive for strong returns.

Net sales in Towers Watson 2013

Alistair Campbell, head of investment marketing at Skandia comments:

“2013 was quite a year in the investment industry. We saw the world markets improve and in particular investor confidence in the UK economy grow. The FTSE 100 delivered the best returns it had seen in years and as a result investment sentiment shifted towards higher risk asset classes such as equities and the global specialist sector. This boosted confidence was highly evident at the end of the year when the ‘great rotation’ out of fixed interest and into equities seemed to materialise.

“It is unsurprising that multi-asset funds have performed so strongly over the year. As a result of RDR and the move to adviser charging, the focus on value for money is more prominent than ever and consequently advisers are looking to a wider range of solutions to cater for the varying investment preferences of their clients’. Packaged investment solutions such as multi-asset funds offer a great alternative for customers who don’t want a bespoke portfolio of funds built by their adviser, but still want to access the top funds and fund managers.”

For more information contact

Amelie ShepherdOld Mutual Wealth02380 916 09107834 499 596
Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076

Notes to Editors:

Old Mutual Wealth

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK & Italy* and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £119 billion in customer investments (as at 30 September 2016).

Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of £342.7 billion assets under management (as at 30 June 2016).

*Old Mutual Wealth announced the sale of Old Mutual Wealth Italy to Ergo Italia on 9 August 2016. The transaction is pending completion.

This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.