Professional Adviser: SLI GARS loses largest IA fund crown to Woolnough's Optimal Income
However, Gavin Haynes, managing director at Whitechurch Securities, disagrees it is all bad news for SLI GARS as he believes absolute return funds could receive a boost in 2018.
"Last year, people got rewarded for taking risk and investor confidence rose but now they are taking profit and looking for more cautious areas, which could benefit absolute return and multi-asset funds."
Meanwhile, looking at the popularity of the M&G Optimal Income fund, selectors said investors liked the flexibility of his fund combined with the track record of Woolnough, who has more than 20 years of industry experience.
Haynes said: "Woolnough is held in high regard, and UK gilts and government bonds did not do so well in 2017 so people were looking for other fixed income exposure and his fund can go anywhere. It can include equities and convertible bonds if he sees fit so it has a very flexible approach. If interest rates go up then it will be very challenging for traditional fixed income funds."
Full Article at: Professional Adviser-SLI GARS loses largest IA fund crown to Woolnough's Optimal Income
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