Barclays Stockbrokers fund investments double year on year
Recent months have seen renewed investor confidence in funds, as figures from Barclays Stockbrokers, the UK's largest online execution-only stockbroker, reveal record fund trading volumes. Fund investments in Q1 2010 more than doubled compared with those in Q1 2009, with April 2010 experiencing the highest funds trading on record. Funds investments in April 2010 increased by 51% compared with the previous month, were up 87% on April 2009 and were up 77% on April 2008. In addition, trading in funds in April 2010 increased by 28% compared with the previous month, by 73% compared with April 2009, and by 47% compared with April 2008.
Interest in Emerging Markets has also been prominent in fund investments so far this year, with half of the top ten traded funds focussing on this theme. The Aberdeen Emerging Markets fund was the most popular fund in April 2010, attracting 7% of all investments, and the top ten most traded funds all fell into the Asia Pacific Excluding Japan, Global Emerging Markets or Specialist IMA sectors indicating further positive market sentiment from Barclays Stockbrokers clients. Other popular funds focused on income and recovery.
Barbara-Ann King, Head of Investments at Barclays Stockbrokers, comments: "This year we have seen positive sentiment from our clients, and many are focussing on funds as their investment of choice as market confidence returns. Our figures reveal fund investments in Q1 2010 more than doubled compared to the same period last year - suggesting not only a renewed confidence in the markets, but that clients are taking full advantage of Barclays Stockbrokers' reduction in the maximum initial charge on our Funds Market funds from 1.5% to 0.5%; this certainly makes investing in funds better value for money.
"The popularity of Emerging Markets also continues; fund investments in this sector accounted half of our top ten traded funds as our clients continue to look far and wide to achieve their desired investment goals. However, it will be interesting to see how investors react as volatility has heightened again over the last few weeks.