Conservative unit trusts in favour

PUBLISHED : Thursday, 12 September, 2002, 12:00am
UPDATED : Thursday, 12 September, 2002, 12:00am

Money inflows to the unit trust industry accelerated in July as investors increasingly opted for more conservative investment options.

A report by the Hong Kong Investment Funds Association showed the fund industry registered gross inflows of US$1.52 billion in July, up by 49 per cent from June.

Net inflows reached US$696.73 million, more than double June's figure.

Among the various products, the highest growth was seen in guaranteed funds.

The aggregate net inflows of guaranteed funds, which allow investors a minimum investment return, reached US$522.07 million, accounting for about 75 per cent of the industry total.

It compared to net flows of US$148.61 million in June.

Bond funds, another conservative type of funds, also recorded robust inflows. They registered aggregate net inflows of US$110 million, up by 8 per cent from June.

Among the various bond sectors, US dollar bond funds attracted the highest net inflows at US$103.56 million. The amount was also the highest for the sector so far this year.

With a 16 per cent increase in redemptions, equity funds recorded net inflows of US$3.35 million, similar to inflows of US$3.37 million in June.

Among the sectors, Asia-Pacific (excluding Japan and Hong Kong) funds came first in terms of net inflows.

During the month, the sector saw net inflows of US$14.35 million.

Net inflows into Hong Kong equity funds reached US$12.84 million in July, against net outflows of US$11.89 million the previous month.

Again, inflows into North American equity funds after netting off redemptions stood at US$2.3 million.