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Adviser firms favouring fixed income and multi-asset investments

2 August 2018

Advisers are increasingly opting for the safety of fixed income and multi asset investments, following a volatile year-to-date for equities, according to Seven Investment Management.

The firm, which published its Q2 2018 platform rankings for the highest selling funds, closed ended investment companies and Exchange Traded Funds, said the prominence of fixed income and multi-asset funds was a flight to safety and suggested many advisers are seeing “few obvious solutions to a world of multiple uncertainties” at a time when markets have failed to show a sustainable rally so far this year.

Damian Barry, senior investment manager, 7IM, explained: “Multi-asset funds will tend to pick up renewed interest in these sorts of environments.”

The platform rankings showed gold featured prominently, with iShares Physical Gold ETC USD the highest purchased exchange traded product and the second most bought product overall on the 7IM platform.

Peter Sleep, senior investment manager, 7IM, commented: “Gold saw global outflows in June and the gold price is down over the year-to-date, not helped by the soaring Dollar. But gold is still seen by some as the ultimate safe haven vehicle and is perhaps being seen as one for the bottom drawer given trade war concerns. It can also be seen as a hedge against inflation.”

Meanwhile, when it came to investment companies, property continues to dominate adviser interest, the firm said. Senior investment manager Simon Moore said the closed ended structure was an appropriate way to invest in illiquid asset classes like property.

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