Barclays Stockbrokers reveals retail investor outlook on funds

Clients of Barclays Stockbrokers reveal they are investing for income, according to the latest poll by the execution-only retail broker. Investors were asked to vote on the funds sector they think will deliver the best returns, as well as to give their views on what they consider to be the most important factor when making decisions about investing in funds.

Faced with 10 different options, the research found that over a quarter of those polled (26 per cent) favour the Income sector for the best returns on their fund investments, with the Asia Pacific sector taking second spot with almost a fifth of the vote (18 per cent). The UK All Companies sector took third place with 15 per cent, while the Growth and Global sectors followed closely with 12 per cent each. When asked what they thought was the most important factor when making funds investment decisions, the majority - a strong 57 per cent of respondents - voted for long term performance, followed by the individual fund manager (16 per cent). Nearly one in ten (9 per cent) said they look to short term performance when making decisions about investing in funds, and an additional 8 per cent said the fund rating was the most important factor.

Further research from Barclays Stockbrokers into the top funds purchased by clients in the month of August found Aberdeen Emerging Markets remaining in the top spot, followed closely by Newton Global Higher Income whilst The Newton Asian Income fund jumped to third place.

Within the top twenty funds purchased in August, the sector focus remained largely similar to previous months. However UK focussed funds climbed towards the top of the list, whilst there was no waning in popularity of Asia Pacific and Global Emerging Markets funds.

Alastair Thaw, Head of Investor Product at Barclays Stockbrokers, said: "It is not surprising to see that investors say they favour the Income sector for fund investments, as they look to make returns in the current market environment, and over the long term. Additionally, the poll results show appetite for Asia Pacific and UK All Companies sectors in second and third places. Our data on fund purchases made by Barclays Stockbrokers clients in August indicates significant appetite from our clients in these sectors.

"We have combined our experience and expertise in stock broking with an expanded and improved fund offering in a single place, meaning our clients have a choice of a wide range of funds which they can access with ease and at competitive prices. With the launch of our regular investment service, investors can choose to add lump sums or drip feed sums into the market over time to build up their investments and maximise tax efficient benefits too."