Cautious Fund Investors Seek Increased Security and Growth Potential

Fund investors have revealed their cautious side, according to Barclays Stockbrokers Funds Market. Investment levels in funds for June reflected a dip in confidence compared to growth seen in the rest of the second quarter as assets fell 42% in June compared to May, and 24% compared to April. This is in contrast to the positive inflows seen following this year’s ISA season, as assets invested in funds increased by 27% in May compared to April. Investors are seeking increased security combined with growth potential for their investments as money market and absolute return top the tables as the most popular sectors. The money market sector continues to prove most popular by assets invested in Barclays Stockbrokers Funds Market in June taking the top slot for the third month running; 34% of total assets. Some investors continue to seek opportunities in more diverse sectors – the specialist sector continues to be popular, taking second place in the second quarter. Latin America and commodity funds in particular took high inflows, with the JP Morgan Natural Resources fund ranking highest in its sector. Threadneedle’s Latin America Fund and JP Morgan’s New Europe Fund also proved popular.

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