The UK Other Bond sector proved most popular in august with retail sales of £118m
Fixed interest funds are becoming increasingly popular with retail investors, according to the latest statistics from Autif.
The trade body found that the UK Other Bond sector had the highest net retail sales in August, at £118m, beating the UK All Companies with £108.3m and North America with £104.9m.
The fourth and fifth most popular sectors were UK Corporate Bond at £68.3m and UK Equity Income at £62m.
While the US was popular overall, some investors were prepared to take a bet on the market having further to fall. Some £569,955 from the intermediary channel went into the Index Bear sector, whose only constituent is the Govett US Bear fund.
Asset allocation by the retail market showed a degree of overlap, with institutional investors also buying heavily into UK and US equities.
In August, the most popular sector with institutions was North America, with net sales of £256.3m, followed by UK All Companies at £157.1m, and Europe ex UK at £120.9m. The fourth most popular destination was Japan at £55m, and fifth was Far East ex Japan at £31.8m.
By contrast, retail investors were overall sellers of Far East ex Japan. It was the least popular sector, with net sales of -£34.9m, while Europe ex UK saw net sales of -£14m. In addition, retail investors put just £4.6m into the Japan sector.
The least popular sector with institutions was UK Corporate Bond which saw net sales of -£167.4m. Second to this was Global Bonds at -£65.1m, and then Global Growth at -34.8m.
Isa sales patterns differ somewhat from those of overall retail sales. The UK All Companies sector came top with net sales of £135.3m, followed by UK Corporate Bond at £33.6m, UK Other Bond at £33.3m and Europe ex UK at £25.9m.
Technology & Telecommunications saw net sales of £1.7m by Isa investors during August.
Over the 12 months to August 2001, Autif has also tracked a gradual move by Isa investors towards UK equities and bonds. Using gross Isa sales figures it found that 41% of these went into the UK All Companies in August 2001, compared with 36% in the same period the year before.
In August 2000, Europe ex UK made up 15% of gross sales but a year later its position was taken by UK Corporate Bond, with a 9% market share.
Overall Isa figures for August of £468m were the lowest on record for a single month and total Isa assets under management remained static at £21bn.
The latest Autif figures do not take into account the response of fund investors to the terrorist attacks on the US on 11 September.
Anne McMeehan, director of communications at Autif, said: 'So far, we are only in a position to relay anecdotal evidence from member companies for September business levels. This indicates a significant downturn in volume of both sales and redemptions.'
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