Mixed Investments 40-85% Shares was the favoured sector for advisers in March with the £3.7bn Vanguard Lifestrategy 60% their top pick in the sector, according to Fundsnetwork sales data. Across sectors, the most popular funds were Lindsell Train UK Equity, Fundsmith Equity and Vanguard US Equity Index.
Top 10 adviser sales by fund via Fundsnetwork
| Rank | Fund Name |
| 1 | CF Lindsell Train UK Equity |
| 2 | Fundsmith Equity |
| 3 | Vanguard US Equity Index |
| 4 | Vanguard LifeStrategy 60% Equity |
| 5 | Cirilium Balanced |
| 6 | Premier Multi-Asset Growth & Income |
| 7 | Royal London Short D Global Index Linked |
| 8 | Artemis Monthly Distribution |
| 9 | Baillie Gifford Japanese |
| 10 | Baillie Gifford American |
Source: Fundsnetwork
Morningstar analyst Randal Goldsmith this week told Portfolio Adviser that, all else remaining equal, the Lifestrategy range would underperform in a rising interest rate environment.
Duration in the passive products has hit up to 9.2 years as governments take advantage of low interest rates, therefore filling the indices that the Lifestrategy products invest in with low-coupon, long-dated debt.
Rival multi-asset products have duration less than two years.
Cirilium Balanced, in the Mixed Investments 20-60% sector, and Premier Multi Asset Growth & Income, in the Mixed Investment 40-85% sector, were the next most popular funds with advisers.
Artemis Monthly Distribution, also in the Mixed Investments 20-60% Shares sector, was also in the top 10. The Mixed Investments 20-60% Shares was the third most popular sector for advisers after Managed Volatility.
Over a five-year period, the Premier Multi-Asset Growth & Income fund has outperformed its rival Vanguard Lifestrategy 60% returning 59.7% compared to the latter’s 43.4%. However, both outperformed the Mixed Investment 40-85% sector’s 37.9% over the period.
Artemis Monthly Distribution in the lower-risk Mixed Investment 20-60% sector also outperformed the Lifestrategy product over the period returning 55.4%. Cirilium Balanced returned 39.4%.
Performance of advisers’ favoured multi-asset funds
| Fund | 1m | 3m | 6m | 1yr | 3yr | 5yr |
| Vanguard Lifestrategy 60% Equity | 2.47 | -2.30 | -1.06 | 3.08 | 20.93 | 43.36 |
| Premier Multi-Asset Growth & Income | 1.37 | -2.43 | -0.14 | 6.77 | 25.61 | 59.71 |
| IA Mixed Investment 40-85% sector | 2.28 | -2.96 | -0.87 | 4.58 | 16.39 | 37.94 |
| OM Cirilium Balanced Portfolio | 1.16 | -2.64 | -1.01 | 3.83 | 19.37 | 39.36 |
| Artemis Monthly Distribution | 1.58 | -2.83 | -0.98 | 2.59 | 24.43 | 55.37 |
| IA Mixed Investment 20-60% sector | 1.67 | -2.16 | -0.79 | 2.79 | 11.76 | 26.54 |
Source: FE Analytics
Fundsnetwork head of sales Paul Richards said advisers’ favoured sectors highlight concerns about market uncertainty amid growing geopolitical concerns.
Richards added there were pockets of strong sales within the UK All Companies sector.
He said: “As Brexit negotiations continue, it will be interesting to see if this sector can regain further interest, as the asset class is still largely unloved by international investors and asset allocators.”
Pension investors favoured the £3.4bn Old Mutual UK Mid Cap fund, managed by Richard Watts, in March, the Fundsnetwork data showed.
