Global risk aversion is manifesting itself in the UK funds market as the cautious managed sector saw a huge upswing in popularity last month, according to Cofunds, the independent platform.

The sector accounted for 55 per cent of net sales in October, compared with a 33 per cent average in 2011 so far. Four of the top five funds in October were funds in this sector.

The second best-selling sector was global, which accounted for 12 per cent of net sales, up from an average 10 per cent this year.

Balanced managed also saw a significant increase, with the sector accounting for 8 per cent of net sales in October.

The top three funds in October were in descending order: HSBC Open Global Return, Premier Multi-Asset Distribution and Thames River Distribution.

Cofunds also reported that UK equity income funds net sales fell by 10 per cent, compared to a 3 per cent average inflow year-to-date.