IFAs are accepting that to achieve the sort of high returns enjoyed during the 1990s, invest...
IFAs are accepting that to achieve the sort of high returns enjoyed during the 1990s, investors will have to take a more dynamic approach to their investment portfolio. To meet this demand onlookers are predicting there will be a surge in UK funds adopting an aggressive investment strategy in the next two years.
This finding was ratified by research for JPMorgan Fleming amongst 50 IFAs. The research revealed 54% of IFAs questioned believe a more dynamic approach is needed for investors craving the high returns of the 1990s. Six out of ten questioned concluded more UK funds will adopt an aggressive investment strategy in the next two years.
In terms of UK funds, just over half questioned, 54%, believe only 6% of UK funds target significant excess returns above the UK market. By 2003 however, one in four Ifas believe the total number will increase by more than 16%.
Mark Campbell, Head of Sales, JPMorgan Fleming, commented: "The 1990s saw some very strong market growth. Indeed, the average UK unit trust fund grew by 167% between 1993 and 2000."
Ifas were found to consider exposure to small caps the most popular mark of an aggressive fund - the view taken by 92% of intermediaries. This was followed by a strong focus on sectors (88%) and 84% classify emerging market funds as aggressive investments. Six out of ten Ifas believe funds with a small number of stocks also fall into the aggressive investment category.
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