LONDON (October 23, 2024) – UK Model portfolio providers (MPPs) reduced their exposure to UK equities in the second quarter despite hiking their overall allocation to equities in a bid to boost returns, new data from ISS Market Intelligence (ISS MI) reveals.
The data shows that MPPs in aggregate reduced their weighting towards the UK All Companies sector as the sector’s share of gross sales into model portfolios fell 1.1 percentage points in H1 as performance lagged other markets, most notably the US.
In the 12 months to 10th October, the FTSE All-Share returned 10.1%, less than a third of the 33.6% that the S&P 500 returned.
Despite their relatively weak performance, UK equities maintained a significant weighting in model portfolios in Q2, accounting for 8.1% of gross sales into model portfolios on average – the fourth highest share of any sector.
While MPPs decreased their sales weighting of UK shares, they increased their overall equity allocation by 4 percentage points in Q2, with 60% of model portfolio gross sales directed towards equity funds.
The data comes from ISS MI’s UK Model Portfolio Sales Report, which draws on adviser platform data to unpick the market structures, trends and opportunities at a firm, model provider and fund level.
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About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Georgia Reveley,
Vice President, Marketing
press@issmarketintelligence.com
Model Portfolios Sell Out of UK Equities as Providers Go in Search of Gains
LONDON (October 23, 2024) – UK Model portfolio providers (MPPs) reduced their exposure to UK equities in the second quarter despite hiking their overall allocation to equities in a bid to boost returns, new data from ISS Market Intelligence (ISS MI) reveals.
The data shows that MPPs in aggregate reduced their weighting towards the UK All Companies sector as the sector’s share of gross sales into model portfolios fell 1.1 percentage points in H1 as performance lagged other markets, most notably the US.
In the 12 months to 10th October, the FTSE All-Share returned 10.1%, less than a third of the 33.6% that the S&P 500 returned.
Despite their relatively weak performance, UK equities maintained a significant weighting in model portfolios in Q2, accounting for 8.1% of gross sales into model portfolios on average – the fourth highest share of any sector.
While MPPs decreased their sales weighting of UK shares, they increased their overall equity allocation by 4 percentage points in Q2, with 60% of model portfolio gross sales directed towards equity funds.
The data comes from ISS MI’s UK Model Portfolio Sales Report, which draws on adviser platform data to unpick the market structures, trends and opportunities at a firm, model provider and fund level.
READ MORE >
###
About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Georgia Reveley,
Vice President, Marketing
press@issmarketintelligence.com
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