Utilities start flowing into the growth market

As with other defensive sectors, utilities outperformed in the US during 2000, while the start of this year has seen funds flowing away from them and towards growth areas of the market. The S&P 500 fell by 9.1% over the 12 months to the end of December, while the S&P Natural Gas index rose 75.49% and the S&P Electric companies index rose 46.22%, in dollar terms. Over the past month, however, the natural gas index fell by 2% and electricals fell by 9.32% compared with a rise of 5.65% in the S&P 500. Rupert Howard, North America fund manager at Aberdeen, says: "Last year, utilities perform...