2022 was a turbulent year for markets. Whilst we’re not quite out of the woods yet, the final quarter seemed more positive with inflation dipping from its highs, and interest rates in the UK expected to peak at just over 4% in the first half of 2023. As we enter the new year, we expect the focus of attention amongst investors to shift from inflation to economic growth.
Against this backdrop, the Academy of Funds saw a continual decline in the number of advisers researching an Inflation Protection outcome, dropping to 11.1% from its highs earlier in the year. Whilst still accounting for the majority of views, there was a notable decline in the number of advisers researching Capital Accumulation strategies, from 51% to 40.7% in Q3 and Q4, respectively. Instead, attention has switched to Income generating strategies which increased by 7.8% in the final quarter, to 33.3%.
Despite 2022 being one of the most difficult years for stock markets, the views per asset class remained unchanged. Equity maintained its position as the most viewed asset class with 54.% of views, followed by Fixed Income (22.2%) and Multi Asset (21.1%).
The IA UK All Companies kept pole position in Q4, as it has done for the entirety of 2022. The IA Mixed Investment 20-60% Shares and IA Targeted Absolute Return sectors came in at joint second place with 8.5% of all views, whilst the the IA Sterling Strategic Bond sector fell from second to fifth place in Q3 and Q4, respectively.
Through the lens of the Fund Dashboard, Square Mile’s opinion received the most interest amongst users, increasing by 9.6% to 37.2% in Q4. In contrast, the ESG pillar saw a sharp drop in interest, declining by 10.6% to 25.6%.
First Sentier Investors were the most researched fund management group this quarter, up from fourth place in Q3, with Baillie Gifford and Schroders taking second and third place, respectively.
Turning to funds, the Ninety One UK Alpha fund maintained its top position within the most researched active funds. Whilst the Aegon Diversified Monthly Income and LF Havelock Global Select funds moved up the ranks to place second and third.
In contrast, there was little movement in terms of the most viewed responsible funds for the last quarter of 2022, with the Wellington Global Impact Bond, FSSA Greater China Growth and FSSA Asia Focus funds remaining stationed as the top three most viewed funds.
In the Risk Targeted space, Liontrust remained the most researched group, however its share of views fell from 26% to 22.8%. Premier Miton Investors and SEI Investors both had a considerable increase in interest over Q4, placing second (20.2%) and third (13.2%), respectively.
From a Passive perspective, the activity remained static with Vanguard, Legal & General Investment Management and BlackRock holding the top three positions for Q4.
For a quick snapshot of the findings from Square Mile's Q4 2022 Market Intelligence Report, download the summary report. If you would like more information, get in touch.
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