After a torrid 2022, markets delivered welcome gains to investors in the first quarter of 2023, but only after subjecting them to another white-knuckle rollercoaster ride. The balancing act being performed by central banks between taming inflation and avoiding recession got even in harder in March as a new fault line emerged in the banking sector and although immediate danger to financial stability seems to have been contained, we expect volatility to be an ongoing feature of stock markets in 2023.
Against this backdrop, searches for funds seeking to deliver Inflation Protection continued to decline, accounting for 7.5% of views, compared to 11.1% in Q4 2022. Capital Accumulation and Income continued to make up the lion's share of activity, with 45.0% and 35.0% of views, respectively.
The start of the year saw bond markets rally, which was reflected in the increase in searches for Fixed Income funds, up 18% to 26.3% over Q1. Over half of views are still attributed to Equity (50.7%), while Multi-Asset and Alternatives remained fairly flat at 22.0% and 0.7%, respectively.
Keeping top spot for over a year now is IA UK All Companies, which accounted for 11.0% of all views. Although, this quarter, IA Sterling Strategic Bond was quick on its heels, up from 5th position in Q4 2022.
Turning to the Fund Dashboard, Opinion and ESG remain the primary access points, with 32.9% and 30.0% of views, respectively. Though down from Q4, those interacting with Performance still account for over a fifth of views at 21.4%.
Jupiter clambered up to top spot with 7.4% of views, with Baillie Gifford and Schroders remaining in second and third place. The Aegon Diversified Monthly Income fund was the most viewed active fund over the quarter, followed by the LF Havelock Global Select fund and Jupiter UK Special Situations fund.
On Responsible Rated funds, the Wellington Global Impact Bond fund continued to dominate views at 12.6%, up by 3.8% from Q4 2022, followed by the FSSA Asia Focus and the CT UK Social Bond funds.
From a passive perspective, Vanguard accounted for over a third of all views (32.4%), followed by BlackRock (18.3%) and Legal & General Investment Managers (16.4%).
Liontrust remained the most researched group offering risk-targeted strategies with just under a quarter of all views (23.1%). Rathbones saw an increase 8% and moved into second place, pushing Premier Miton into third place.
For a quick snapshot of the findings from Square Mile's Q1 2023 Market Intelligence Report, download the summary report. If you would like more information, get in touch.
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