Advisers are abandoning inflation protection while showing greater interest in funds with the potential of preserving capital, according to Titan Square Mile’s latest Market Intelligence Report.

The report, which assesses viewing patterns among financial advisers using the Titan Square Mile Academy of Funds, showed that fewer than 1 per cent of searches from advisers researching investment options for their clients featured inflation protection in Q3.

This was down from 5.6 per cent in the second quarter, despite concerns over persistent levels of inflation in the UK economy.

Interest in capital accumulation and income strategies remained broadly stable at 42.6 per cent and 37 per cent in Q3.

Research into funds with the potential of preserving capital saw the largest change in adviser viewing patterns, rising by 6.6 percentage points in Q3 to 21.4 per cent.

Titan Square Mile said that this suggested advisers were looking to protect client portfolios from a potential market correction.

IA Global was the sector that accounted for the most searches in the third quarter at 19 per cent, almost twice that of the second most popular sector IA Sterling Strategic Bond at 10 per cent.

IA UK All Companies was the third most searched-for sector in the third quarter at 8.7 per cent.

Titan Square Mile noted that the top five most researched funds covered a range of sectors, including UK smaller companies and Japanese equities.

The WS Havelock Global Select fund was the most viewed, followed by WS Amati UK Listed Smaller Companies, Baillie Gifford Japanese, and Wellington Global Impact Bond funds in second, third, and fourth place respectively.

The report also showed changes in leadership among fund groups offering risk-targeted solutions.

While Rathbones and Liontrust retained their positions in second and third place respectively, Legal & General Investment Management experienced a 12.4 percentage point increase in their share of views to 22.9 per cent, bringing the firm up from fifth place in Q2 to top position in Q3.

The Legal & General Multi Index 5 portfolio was the most viewed risk-targeted proposition overall, accounting for 10.8 per cent of all views, an increase of 9.1 percentage points on the previous quarter.

Aviva Investors Multi-Asset Core 1 and CT Universal MAP Balanced which were in second and third place with 6.5 per cent and 5.4 per cent respectively.

“The IMF has warned that the UK faces the highest levels of inflation among its G7 peer group over the remainder of 2025 and into the new year,” said Titan Wealth senior business development manager, John Lester.

“However, our latest Market Intelligence Report paints a different picture of what might be front of mind among advisers analysing investment strategies via the Titan Square Mile Academy of Funds.

“The fact that research into inflation protection as an investment outcome in Q3 was negligible while capital preservation registered a marked increase suggests a shift towards greater caution as alarm bells continue to ring over a potential market correction driven by a sell-off in AI-related companies.

“However, with capital accumulation strategies continuing to dominate adviser research, adviser outlook appears to remain relatively sanguine overall, despite an uptick in interest in protecting capital.

“We would always advocate diversification across asset classes and investment styles supported by robust fund research as a sound strategy to protect portfolios against an uncertain market backdrop.”

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