Income funds dominate FundsNetwork sales in September

John Chatfeild Roberts 450 Index

Fidelity FundsNetwork saw income funds dominate adviser sales during September, with seven funds in the top ten.

The £3.2bn Fidelity MoneyBuilder Income fund, managed by Ian Spreadbury, was the most popular fund with advisers during September. It first topped the sales list in May and has held the number one slot ever since.

The £3.8bn Jupiter Merlin Income Portfolio, managed by the John Chatfeild-Roberts (pictured) and the Jupiter Merlin team, was second-placed.

Top 10 Adviser Sales (Funds)
1. Fidelity MoneyBuilder Income
2. Jupiter Merlin Income Portfolio
3. Invesco Perpetual High Income
4. Fidelity Strategic Bond
5. Invesco Perpetual Distribution
6. M&G Optimal Income
7. Newton Global Higher Income
8. M&G Global Dividend
9. Fidelity Multi Asset Strategic
10. Standard Life Global Absolute Return Strategy
Source: Fidelity FundsNetwork

Neil Woodford’s £12bn Invesco Perpetual High Income is third-placed, while the £1.8bn Invesco Perpetual Distribution fund he manages with Paul Causer & Paul Read is fifth-placed. Ian Spreadbury makes a second appearance in the top five with the £1.2bn Fidelity Strategic Bond fund in fourth.

The most popular sector by adviser sales was the Mixed Investment 20-60% Shares sector, with multi-asset funds remaining popular with advisers. The popularity of the equity income theme was witnessed again, with both the UK Equity Income and Global Equity Income sectors both appearing in the top ten.

Bond funds were also popular during September as both the Corporate Bond and Strategic Bond sectors made it in to the top five sectors by adviser sales.

Top 10 Adviser Sales (Sector)
1. Mixed Investment 20-60% Shares
2. Corporate Bond
3. Strategic Bond
4. UK Equity Income
5. UK All Companies
6. Global
7. Absolute Return
8. Asia Pacific Excluding Japan
9. North America
10. Global Equity Income
Source: Fidelity FundsNetwork

FundsNetwork head of marketing Klare Baldwin says: “The majority of advised clients are still seeking safe havens with income and bond funds remaining the top picks.

“M&G’s Global Dividend fund has rejoined the top 10 list, having last featured in July, demonstrating that investor appetite for global dividends as an alternate source of income is on the rise.

“As a result of this trend, the Global Equity Income sector made it onto the top 10 sectors list and, whilst the top five sectors remain non-movers, changes to the bottom five sectors suggest that clients are increasingly looking beyond the UK to provide further diversification to their portfolios.”