equities and fixed income dominate ifa allocation

Legal & General Investments’ latest research shows equities will continue to dominate IFAs’ asset allocation over the coming 12 months.

equities and fixed income dominate ifa allocation


The company’s latest What Matters Investment Index took the opinions of more than 200 IFAs, 46% of who said they are likely to invest in fixed income funds over the coming 12 months, up from 27% in 2011’s index.

Simon Ellis, managing director at Legal & General Investments, commented: “While the percentage of advisers currently invested in fixed income funds has changed only marginally in the past year, the increased appetite to invest in the next 12 months is considerable; a 70% growth year-on-year.”

Another big increase was seen in the take-up of multi-manager funds over the past 12 months with 43% of those advisers surveyed investing in them, an increase from 36% last year. Looking ahead 12 months, and 35% (31% in 2011) said they are likely to invest in multi-manager funds.

However, equities remain the IFAs’ asset class of choice, with 95% currently invested (92% in 2011) and 83% (77%) likely to invest in the coming 12 months.

Ellis added: “Diversification is now the key theme for advisers in portfolio recommendations, whether that be outsourced to multi-asset or multi-manager funds (including the use of DFMs), or through broadening the range of fixed income and property funds in use.”

More than a quarter (27%) of IFAs are looking to allocate to property.