Using FE’s unique Analytics Market Intel (MI) tool, we look at the top 10 funds advisers were researching from January to September 2017.
UK advisers favouring home market
UK Equities including Income and UK All Companies make up the biggest percentage of the 50 most researched funds with just over 20%.
Tanvi Kandlur, fund analyst at FE comments: “This could be a classic case of stick to what you know. Research has shown that investors tend to be biased towards their home country so it is not surprising that advisers researched mostly UK funds. Investors tend to be more comfortable with their home market and invest there despite better investment opportunities being available elsewhere.”
Targeted Absolute Returns
Over the last three quarters, two Targeted Absolute Return funds have made it into the top 10 most researched funds despite Absolute Returns more generally having underperformed of late.
Table of top 10 most researched funds:
Robert Wilson, research analyst at FE says: “Over the past two years, Absolute Return funds have generally not done their job of delivering positive returns regardless of whether the market goes up or down.
“With valuations stretched in many markets, investors are wary of a correction and even though Absolute Returns have struggled, investors are betting the environment is finally becoming more conducive to them.”
Resilience in the top 10 most researched funds
Fundsmith Equity and CF Woodford Equity Income find themselves in the top 10 most researched funds again.
Tanvi Kandlur states: “Fundsmith Equity is run by Terry Smith who boasts a very strong track record. His approach to investing in quality business with a strong competitive advantage at attractive valuations is nothing new but he has been consistent in his approach. Managing over £11 billion, it is not surprising Fundsmith is among the most researched.
“CF Woodford Equity Income is likely researched for different reasons. Manager Neil Woodford has a strong reputation in the UK but has been underperforming for over 18 months. This is made worse by several single stock positions that have taken a sharp beating year-to-date.”