Top five funds in September
Baring Europe excluding UK
The fund attracting most money in the UK and open ended investment companies (Oeics) sector over a one month period was Baring Europe excluding UK, according to the latest data from FE Analytics.
The £243.3 million fund, managed by James Buckley, attracted approximately £210.9 million, growing from just £27.5 million in size a month ago.
Buckley aims to achieve capital growth by investing in economic sectors in Europe through securities in any country and/or economic sectors globally represented in European markets.
The fund's top holdings include Sanofi, Roch Holdings, Bayer, BNP Paribas, UBS, Allianz, Novo Nordisk and AXA. After one year, it has returned 25.7 per cent compared with 28.5 per cent in the UT Europe excluding UK sector as at 30 September.
Baillie Gifford Diversified Growth fund
Second was the £4.1 billion Baillie Gifford Diversified Growth fund, managed by Patrick Edwardson and Mike Brooks. It saw inflows of approximately £150 million in September.
Newton Real Return fund
The £8.3 billion Newton Real Return fund, managed by Iain Stewart and James Harries, took third place, attracting in the region of £143 million.
Threadneedle European Select fund
Fourth was the £2.1 billion Threadneedle European Select fund, managed by David Dudding, gaining inflows of around £133.2 million.
Schroder Global Emerging Markets
Finally, the fifth-most-popular fund was the £626.9 million Schroder Global Emerging Markets, managed by Robert Davy and Allan Conway, which attracted approximately £115.9 million.
Open-ended investment companies are hybrid investment funds that have some of the features of an investment trust and some of a unit trust. Like an investment trust, an Oeic issues shares but, unlike an investment trust which has a fixed number of shares in issue, like a unit trust, the fund manager of an Oeic can create and redeem (buy back and cancel) shares subject to demand, so new shares are created for investors who want to buy and the Oeic buys back shares from investors who want to sell. Also, Oeic pricing is easier to understand than unit trusts as Oeics only have one price to buy or sell (unit trusts have one price to buy the unit and another lower price when selling it back to the fund).
Generic, loosely-defined term for markets in a newly industrialised or Third World country that is in the process of moving from a closed economy to an open market economy while building accountability within the system. The World Bank recognises 28 countries as emerging markets, including Argentina, Brazil, China, Czech Republic, Egypt, India, Israel, Morocco, Russia and Venezuela. Because these countries carry additional political, economic and currency risks, investors in emerging markets should accept volatile returns. There is potential to make large profit at the risk of large losses.