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Barclays Stockbrokers investors choose income investment funds

20 April 2009 / by Rebecca Sargent
Investors are on the hunt for income returns in the form of Exchange Traded Funds (ETFs), other funds, gilts, and bonds, research from Barclays Stockbrokers has revealed.

In fact, the research revealed that income investment products accounted for 49 per cent of all assets invested through Barclays Stockbrokers in March.

Despite recent news of Barclays' sale of its ETF arm iShares, trading activity in iShares and other ETFs was up 31 per cent in March compared to February, and 123 per cent higher than in March 2008.

Commenting, Barbara-Ann King, head of investments at Barclays Stockbrokers said: "It is encouraging that clients are using ETFs such as iShares to achieve their income goals.

"ETFs will be attractive to those investors who are looking to actively diversify their portfolio while being able to take advantage of different markets and sectors," she added.

Meanwhile, other income funds proving popular with investors include corporate bonds, with the M&G Corporate Bond Fund topping the charts. This trend is worlds apart from the top purchases in 2008, which focussed on China and the Asian Pacific region.

Ms King continued: "The desire for income in the market place is clear when you look at how our clients are investing. They are turning to Fixed Income (gilts and bonds) and dividends from equities to compensate for capital losses.

"Whilst many investors are happy choosing individual investments, many others look for the diversification and convenience offered by ETFs and funds where in some instances there is the added benefit of professional management in a self-directed portfolio."

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