The Cofunds temporary Cash Reserve has seen more inflows than any fund on the platform in 2008.
Designed as a haven to hold cash inside a Stocks and Shares ISA pending a suitable investment opportunity, Cofunds says its Cash Reserve facility has seen “substantial flows of money” in the last two months.
The Cash Reserve has topped gross sales in both January and February, whether held inside or outside an ISA wrapper.
Cofunds marketing and proposition director Alastair Conway says market volatility is clearly unsettling investors.
“We are still in substantial net sales on every tax wrap, but volumes are, unsurprisingly, somewhat down on 2007 - except for SIPPs,” he says.
“In the old days, a nervous client would have had to surrender an ISA or sold their funds and put the money into their bank account.
“The benefits of the ISA product would have been lost and it would have been a slow and expensive process to get back into the market when things started to improve.
“Now, their adviser can manage assets on the platform whether using Cash Reserve in an ISA or our new cash account for unwrapped funds or the cash facilities within our SIPP and insurance bond links.
The top 10 funds for the first two months of 2008 on Cofunds are:
- Invesco Perpetual High Income
- BlackRock UK Absolute Alpha P
- Invesco Perpetual Corporate Bond
- Invesco Perpetual Income
- Old Mutual Corporate Bond A
- Merrill Lynch Gold & General A
- Artemis Income
- Invesco Perpetual Monthly Income Plus
- JPM Natural Resources A
- Allianz RCM BRIC Stars A
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