Investors wary of growth funds Pridham report

Income funds are popular as fears over value dampens interest in growth funds.

Investors wary of growth funds Pridham report


This was reflected in the popularity of the recently launched Kames Capital’s Diversified Income Fund.
“The interest in the fund was not surprising but not entirely predictable either,” according to report editor Helen Pridham. “There is a hunger for income among investors, who previously had been focused more on growth.”
Overshadowed by a more circumspect mood in the first quarter, fund net retail sales were down 10% on the previous quarter. Traditionally, sales tend to peak in the first quarter but this year, as was the case in 2013, figures slumped. 
“The uncertainty factor of what’s happening in Russia and the Ukraine impacted fund net retail sales. Also it was a pause for breath as investors had been catching up with investing last year,” Pridham said. 
Fund managers were overall positive and said they had recorded a good April, seeing steady flows into companies, she added. 
“The second quarter should do well. A surge of people investing in ISAs are likely to give Q2 figures a kick,” Pridham said. 
The top group for gross retail sales in the first quarter was M&G, which regained the lead from Schroders, according to the report.
Meanwhile in the top ten managers by net retail sales table, Old Mutual Global Investors came out on top this quarter and reached fifth position for gross retail sales. Richard Buxton has attracted high inflows and his UK Alpha Fund remains a best-selling product. 


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