Specialist funds increased their retail market share during 2000 on the back of sales of technology ...
Specialist funds increased their retail market share during 2000 on the back of sales of technology but UK corporate bond and equity income funds saw their sales decline.
According to figures from Autif, specialist sector funds accounted for 9.96% of retail mutual fund sales during 2000, up from 3.43% during 1999. The North America and global growth sectors also saw their share of retail mutual fund sales increase in 2000 compared with a year earlier.
North American fund sales accounted for 8.35% in 2000 compared with 4.46% in 1999. The global growth sector saw its share of retail fund sales grow to 6.14% last year compared with 3.99% in 1999.
The UK corporate bond sector saw its market share fall to 4.62% in 2000 compared with 11.47% in 1999, while the UK equity income sector's share of fund sales fell to 4.74% from 7.2% over the same time period.
The number of UK All Companies funds sold also fell between 1999 and 2000 but this sector still makes up nearly a quarter of all retail mutual fund sales and continues to be the most popular sector for investors.
UK All Companies funds' market share fell to 24.67% in 2000 compared with 27.93% a year earlier. The second most popular sector continues to be Europe excluding the UK, with this part of the market seeing its share of retail mutual fund sales rising to 14.25% from 12.23%.
Clare Arber, marketing manager at Autif, said: "With stock markets flat and interest rates low there is clearly a dilemma for investors as they search for performance. The continuing flows into core sectors, such as UK All Companies and Europe, suggest that investors do understand that performance is a long-term concept."
Isa sales in November last year were lower than in the previous year with Autif attributing this to disappointing market performance during 2000, which saw a decline in both the US and the UK.
Gross Isa sales were £669m in November 2000, compared with £744m in November 1999 and £700m in October 2000.
Net Isa sales were also lower in November 2000 compared with a month earlier and a year earlier.
During November 2000, net Isa sales were £578.5m compared with £633.1m in October 2000 and £719.5m in November 1999.
The most popular retail mutual funds overall were UK All Companies and North America funds, with net sales of £335.3m and £204.8m respectively. The least popular sectors were UK corporate bond and UK equity income, which saw net repurchases of £35.2m and £36.4m respectively.
Total Isa funds under management have risen slightly reaching £17.6bn in November 2000 compared with £17.5bn in October 2000 and £6bn in November 1999.
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