Average annual growth in global emerging market funds to the end of October was 25.2 per cent as emerging market funds posted their highest ever monthly sales.

Funds in the Investment Management Association (IMA) global emerging markets sector saw net sales of £336million making it the best selling sector in October. Absolute return funds came in second with £285million net sales.

Global emerging market funds include funds investing in the BRIC countries – Brazil, Russia, India and China – and other developing economies. Absolute return funds attempt to deliver positive returns regardless of market conditions, for example using financial instruments to benefit from falls or rises in asset prices.

IMA chief executive Richard Saunders said: “Investors added a further £2billion to their holdings in October. Despite a slowdown month on month, year to date ISA sales are still showing a strong recovery. Investors continue take advantage of the tax benefits of ISA investing.”

Saunders said the appetite for global investing continued with global bond funds also a popular choice.

The IMA figures show the overall rise in the equity markets increased the level of funds under management in October at £557billion.

In terms of asset class, bonds were the most popular asset to invest in with net sales of £809million significantly above sales of equity funds which totalled £475million in October.

Performance information for fund sectors showed average annual growth in global bond funds was 10.1 per cent, and for UK domiciled absolute return funds the average was 3.1 per cent.

UK gilts (government bonds) funds’ annual growth was 4.4 per cent on average and strategic bond funds had 10 per cent average annual growth to October.

© Fair Investment Company Ltd