Multi-asset funds dominate sales in 2013
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10/01/2014

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:

About Quilter plc:

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

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.