Advisers are shunning plain vanilla equity funds investing in the developed world this ISA season, in favour of emerging market, absolute return and cautious managed strategies.
A Professional Adviser survey of the UK’s largest fund management groups, a week away from the end of the tax year, shows equity funds focusing solely on the UK, US, Japan and Europe have failed to spark any substantial IFA interest. While shares in established regions have climbed strongly over the past 12 months, highlighted by the FTSE 100 hitting a 21-month high last week, the large deficits consuming many developed regions seem to be weighing heavily on investor sentiment this year. Emerging market funds are the best-selling equity vehicles according to fund groups, with the buzz...
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