Diversification December: The Share Centre’s top five funds at end of 2013

The Share Centre’s most popular funds purchased on its platform suggest investors moved to diversity their portfolios in December . 

Within the top five, a diversification trend was reinforced as the most popular funds list included a mix of passive and active strategies covering a range of asset classes. 

The £4.5bn Legal & General UK Index trust was the most popular fund in the month as investors looked to access broad exposure to the FTSE All-Share index.

The £14m First State Asian Property Securities fund was the most popular as investors sought for indirect exposure to the Asian properly market.

The next most popular fund was a new entry to the top ten most bought funds list – the £14m Henderson European Absolute Return fund.

After this, the £1.3bn Cazenove UK Smaller Companies fund was the next most popular fund and the £50m City Financial UK Equity fund was the fifth most popular – in addition to being another new addition to the most-bought list.

The Share Centre head of investment research Andy Parsons says: “As the year came to a close, there remained a strong swell of optimism that the market momentum in both the UK and US would continue into 2014.

”Despite a number of headwinds, we believe there are reasons to be optimistic as the continual flow of positive economic data continues to fuel the momentum and corporate balance sheets remain awash with cash. 

“The most prominent investment theme throughout 2013 was the hunt for additional income, however as the year progressed, investor appetite appeared to seek a higher degree of risk – in particular a bias towards smaller and mid- sized companies.”

December top purchased funds from The Share Centre

Position Fund

1

Legal & General UK Index Trust

2

First State Asian Property Securities

3

Henderson European Absolute Return

4

Cazenove UK Smaller Companies

5

City Financial UK Equity

6

Baillie Gifford British Smaller Companies

7

Fidelity American

8

Cazenove UK Smaller Companies

9

Jupiter Global Managed

10

Schroder US Mid Cap