The Cautious Managed sector continues to dominate inflows on Cofunds, accounting for nearly a third of net sales in Q1, with property also prominent.
Cautious Managed led with 32% of net sales, but the Property sector rose to the second place - boasting four funds inside the top 50 fund list.
The Corporate Bond sector dropped to sixth place, with only 6% of net sales and no funds inside the top 50. In March, the sector accounted for only 2% of sales, with investors preferring the flexibility of strategic bond offerings.
Strategic Bond, with 8% of sales in the quarter, was the third-highest selling sector and four funds - M&G Optimal Income, Henderson Strategic Bond, L&G Dynamic Bond and Invesco Perpetual Monthly Income Plus - were inside the top 20. With 11% of sales in March, the sector is increasing steadily at the expense of the plain vanilla Corporate Bond.
Strong showings by the higher risk Global Growth (6%) and Global Emerging Markets (3.5%) markets completed the picture of a less risk-averse investor.
However, Cautious Managed stole the show and continued to climb the ranks, increasing its dominant proportion of sales from 24% last quarter to 32%. Five funds made it into the top ten, with Henderson MM Income & Growth claiming top spot, followed by Thames River Distribution and Jupiter Merlin Income Portfolio.
Michelle Woodburn, Cofunds business development manager, expects the multi-asset Cautious Managed sector to remain in pole position for at least the next couple of quarters.
"I think a lot of advisers like the idea of outsourcing investment decisions," she says. "The sector performed very well indeed, led by big clients who have multi-managed funds on panels."
The dominance of Cautious Managed, she adds, represents a return to stability, with the sector traditionally dominating in "normal times".
Meanwhile, M&G, Invesco Perpetual and Jupiter remain the dominant fund managers. M&G had seven funds in the top 50, with Invesco Perpetual and Jupiter having five each.
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