Financial adviser interest towards income-related funds has dropped, while at the same time there has been increased attention in capital accumulation funds.
Square Mile’s quarterly Market Intelligence Report, published today (12 April), showed via its Academy of Funds that adviser interest for income-related funds was at 46.7% in Q3 2023. This dropped to 40.6% in Q4 and to 32% in Q1 2024.
However, capital accumulation funds saw a 33.3% share of all searches in Q3 2023, which then rose to 46% Q1 2024.
Regarding closed-ended funds, abrdn UK Smaller Companies Growth Trust was the most viewed at 11.64%, with Fidelity Special Values coming in second at 11.4%.
The City of London Investment Trust and Invesco Asia Trust took third and fourth positions with 9.98% and 9.03% respectively.
Despite having dropped to third place in Q4 2023, Liontrust was the most researched asset management company, accounting for 26.8% of searches.
The Investment Association (IA) Global sector was the most researched sector with 17.6% of all views, up from fourth place in Q4 2023, and ten percentage points ahead of IA UK All Companies which came in second, followed by IA Sterling Strategic Bond.
Square Mile business development director Scott Dakers said: “Many of the economic known unknowns continued to loom over sentiment as the first quarter of 2024 rolled out and market commentators have watched each new data set with keen interest.
“On a political level, the coming months will see several key elections, not least in US, which may have repercussions on a global scale at a time when geopolitical tensions remain heightened.
“Despite this uncertainty, we believe that when it comes to investment, it is essential to remain fixed on the long-term and our team of fund analysts is focused on identifying those strategies with the greatest potential of consistently delivering on their stated objectives over time.
“Our latest MI Report suggests that fund selectors share this longer-term focus given their research into funds, which promise capital growth over more defensive strategies.
“Nonetheless, the fact that the IA Global sector was the most researched is perhaps indication of a reluctance among advisers to take regional investment calls, and a preference to delegate asset allocation to fund managers with the ability to navigate an increasingly complex global stage.”
Square Mile Academy of Funds data is based on 377 open and closed ended funds.
