FirstChoice funds flowing back to equity products
|
|
Advisers are moving client funds back into equity products and even geared equity products, according to Scott Tully, head of FirstChoice Investments at Colonial First State.
June figures for platform flows “definitely showed that funds allocations to equities and risk assets are increasing”, Tully said.
While he has yet to see the July figures, he “fully anticipated flows into equity products and even geared equity products” to have accelerated during last month, although he wouldn’t yet say that it represented a trend away from cash.
“There’s a very large amount of money sitting in cash on our platform, and the flows into equities are still a reasonably small component of that.
“However, the expectation would be that cash is going to find a home at some point, especially with interest rates being low.”
Tully said that while those investors who stayed in cash have missed the market upside since March, the market is still only at levels similar to those seen around November last year.
Last week, head of investment strategy at UBS George Boubouras said cash holdings have remained high among domestic investors despite evidence of a sustained rebound in world share markets.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
