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Home > Investments > Multi-Manager Funds

Fund of fund sales fall by half compared to last year

Sales in the second quarter this year breached the £1bn mark, but are £900m lower than the same period last year.

By Bradley Gerrard | Published Aug 03, 2012 | comments

Sales of funds of funds were £1.1bn in the second quarter of 2012, half the level they stood at last year, according to the IMA.

The fund management trade body’s latest quartly fund of funds figure compares to the net sales of £2bn seen in the same quarter in 2011.

Funds under the management of funds of funds totalled £63.6bn at the end of the second quarter this year, accounting for 10.6 per cent of total funds under management.

An equal amount - £31.8bn - was invested in external funds and internal ones. Mixed assets continue to have the highest share of funds under management for funds of funds with the Mixed Investment 20-60% Shares and Mixed Investment 40-85% Shares sectors accounting for 81% of this.

The statistics look at figures for funds of funds, ethical funds and tracker funds for the second quarter of 2012.

“Net retail sales of funds of funds went above £1bn in this quarter for the first time in a year,” said Richard Saunders, IMA chief executive.

“While the second quarter saw more subdued sales of tracker funds, their share of total funds under management has been rising for about four years and now stands at 7.5 per cent.”

Tracker funds saw net retail sales in Q2 of £312m - the lowest since the first quarter of 2010. The average net retail sales for the previous four quarters is £534m.

Tracker funds under management were £44.7bn at the end of June 2012, accounting for 7.5 per cent of total funds under management, up from 7.1 per cent a year ago.

Meanwhile, ethical funds saw an outflow of £2m following an inflow of £26m the previous quarter.

The average net retail sales figure for ethical funds over the previous four quarters is £35m.

Ethical funds under management totalled £6.9bn at the end of June 2012 and account for 1.2 per cent of total funds under management.

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