Investor interest in funds delivering capital accumulation saw a spike in the first quarter of the year, according to Square Mile’s latest Market Intelligence (MI) Report.
The latest quarterly report – which is a register of viewing patterns among advisers using Square Mile’s Academy of Funds – showed research into capital accumulation funds accounted for 45% of all views, up from 40.7% in the final quarter of 2022, but still down from the 51% registered in Q3.
Despite the increase in capital funds, income-generating strategies still commanded 35% of all views, which was broadly unchanged from the last quarter.
While UK equities have been unloved among retail investors for some time, with savers withdrawing £1.6bn ($,1.98bn, €1.81bn) in February alone according to Investment Association (IA), the research revealed the asset class accounted for two of the five most viewed funds over the quarter, with the Jupiter UK Special Situations and ES R&M UK Recovery funds ranking in third and fourth place respectively.
“Many UK equity managers consider the market to be offering particularly good relative value while offering access to both businesses with a global footprint as well as compelling opportunities further down the market-cap scale,” said Jock Glover, strategic relationships director at Square Mile. “It is possible that advisers are increasingly warming to this view.”
Topping the rankings for the most viewed fund was the multi-asset Aegon Diversified Monthly Income, followed by the more capital accumulation-oriented Havelock Global Select fund, while the M&G UK Inflation Linked Corporate Bond fund took fifth spot.
Equities remained the most researched asset class, accounting for one in two visits to the Academy of Funds, double that of fixed income’s 26% of views, while in terms of individual sectors IA UK All Companies maintained its place as the most viewed peer group with an 11% share.
Breaking it down by fund groups, Jupiter overtook last quarter’s leader First Sentier to rank number one overall in the quarter, pulling in 7.4% of all adviser views, while Liontrust remained the most researched group with risk-targeted strategies, with just under a quarter of all views (23.1%).
