You are here: Home - Saving & Banking - News -

Advisers’ flight to safety

0
Written by:
04/09/2008

Virgin Money’s Investor Intentions Index has revealed a short-term flight to safety as IFAs advise clients to move into cash and bonds rather than the stock market.  

Cash and bonds were the top two sectors chosen by advisers for the next three months, rather than emerging markets and UK shares – the top choices in Virgin Money’s first index.

The quarterly index tracks the confidence of IFAs across the country in 10 different investment sectors, as well as where they advised clients to invest their money during the previous quarter. The latest survey reveals short-term confidence in equity investments has been shaken in recent months.

Approximately 86% of IFAs said they would advise clients to invest in cash over the next three months, with 83% plumping for bonds, this compares to 78% and 75% respectively in the previous three months. UK shares were still investment of choice for 78% of IFAs looking to the next three months, compared to 74% who advised clients to pick this type of investment in the previous three months.

Property and commodities fared worst of all sectors in terms of IFAs’ confidence for the future. Only 41% of IFAs are choosing property for the next three months, with 40% picking commodities. Previously, 50% chose property and 52% went for commodities.

Scott Mowbray, spokesman for Virgin Money, said: “The shift to cash and bonds is a sign of the times with stock market volatility and almost daily doses of bad news hitting confidence in shares. It is clearly a case of safety first for advisers with clients’ best interests at heart.

“Concerns about inflation are the dominant factor in the market with that worry outweighing fears about the UK economic slowdown tipping over into recession.

“Despite the short-term angst our research shows IFAs remain optimistic about the long-term outlook for UK and emerging market shares. The real damage has been done to property and commodities while other sectors such as green investments are holding up well.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Consumers still forking out for dial up

Recent statistics have shown that 9% of UK households with internet access are still using a dial-up connection despite it...

Close