27 June 2008: Investors seek diversification through funds

The majority of investors invest in funds to achieve a diversified portfolio (63 per cent), according to research from Barclays Stockbrokers*. One in six (16 per cent) use funds because an expert manages their money and one in ten (10 per cent) because they believe it is easier than trading shares. Just over one in ten (11 per cent) invest in funds simply because they believe they generate good returns.

Chris Stevenson, Associate Director, Funds, at Barclays Stockbrokers says: “In current market conditions it is encouraging that the priority for investors is diversification as this is key to generating good returns and ensuring their portfolios weather market storms. The security that comes with knowing a professional is managing their money is obviously also a priority for funds investors and is likely to continue to be so. Funds are a great way for the more cautious investor to access a broad range of markets and sectors to suit their investment objectives.” 

Barclays Stockbrokers Funds Market is currently offering a special offer on five funds, from some of the leading managers, in its fund supermarket. The funds, covering a range of growth and income investment objectives, are available with a zero per cent Initial Service Charge, until 30 June.**

The funds are:

Aberdeen Asia Pacific
Artemis Income
Fidelity EMEA
JP Morgan Natural Resources
Schroder UK Alpha Plus 

Chris Stevenson continued: “We are delighted to be providing this special offer to our customers. The five funds encompass a varied range covering several sectors, and through this we aim to cater for the breadth of our client base. 

“We’ve looked at current client appetite for funds investment and there’s a strong trend of clients seeking exposure to eastern and emerging markets, and commodities through funds. Aberdeen Asia Pacific, Fidelity EMEA fund and JP Morgan Natural Resources should appeal to investors looking to diversify their portfolios in these areas. For clients looking to invest closer to home, we have Schroders UK Alpha Plus fund, and for investors with a more cautious income objective, Artemis Income fund completes the set of five. We feel this selection supports the diversification needed by investors today.”

* Results taken from Barclays Stockbrokers web poll (6 – 19 June 2008):

I invest in funds because…

It’s easier than trading shares: 10% (53)
An expert manages my money: 16% (82)
They provide diversification: 63% (332)
They generate good returns: 11% (58)
(Total: 525)

** The offer of 0% ends on Monday 30 June 2008.

For further information contact:

Caroline Wells / Nicola Hankey
PR, Barclays Wealth
020 7114 7435 / 020 7114 9813

or

Katie Hayward / Katherine Hobby
Lansons Communications
020 7294 3631 / 020 7566 9704
katieh@lansons.com / katherineh@lansons.com