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 central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
