Over half of Cofunds’ sales went into safety areas of Cautious Managed, Money Market and Absolute Ret...
Over half of Cofunds’ sales went into safety areas of Cautious Managed, Money Market and Absolute Return during the third quarter.
However the platform said it has started to see outflows from the Cautious Managed funds in the past month with sales picking up in bonds and gilts instead.
Russell Lancaster, head of fund manager relationships, said: “The movement into fixed income vehicles has increased and I think we will see it become stronger in the fourth quarter. From what I have heard from groups, they are seeing this in their direct sales too.
“I think the rise in bond sales will result in Cautious Managed being the loser. If you actually look at the range of funds and their underlying performance, for some it has not been particularly cautious at all.”
Around 22% of net sales went into Cautious Managed, 15% into Money Markets and 15% in Absolute Return.
Cautious Managed remained the most popular sector for the fifth consecutive quarter and has overtaken the UK Equity Income in terms of AUA.
BlackRock UK Absolute Alpha continued to reign as the top-selling fund although in September it lost the top spot to the Smith & Williamson Cash fund.
