Advisers cut bond exposure despite continuing boom

Financial Express’s rebalanced Adviser Fund Index (AFI) has revealed that advisers cut their exposure to fixed interest in October, despite IMA data for the third quarter showing the bond boom continuing.

In the AFI, emerging markets occupied the top three slots in advisers’ aggressive allocations, with First State Asia Pacific Leaders first on 6%, Aber­deen Emerging Markets second on 3.5% and Ignis Hexam Global Emerging Markets third on 3%. The sector also contributed three new entrants to the AFI, the Aviva Investors Emerging Markets Local Currency Bond, Insight Absolute Emerging Market Debt and Martin Currie China funds.

Global Bond provided two new entrants, the Legg Mason Global Multi-Strategy Bond and Templeton Global Total Return Bond funds.

UK All Companies funds were most frequently ejected from the index, with popular funds Artemis UK Growth, JOHCM UK Opportunities, Old Mutual Select Mid Cap and BlackRock UK ­Special Situations all making an exit.

Overall, net retail sales in September hit £2.4 billion, lifting funds under management to a record £542.6 billion.