Bond fund assets increased by 33.4%, equivalent to $57.2bn (€49.8bn) over the six months to the end of May 2003, according to a new report, a sign that investors are continuing to seek alternatives to equities.

Alternative assets, such as private equity and hedge funds, only make up 0.9% of the total assets of $859.6bn covered by the survey, but this is increasing rapidly, said Fitzrovia International, the fund research firm. Fund flows into alternatives rose 43% over the past six months to the end of May, with assets reaching $7.7bn.