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Home > Investments > Multi-Manager Funds

Fund of fund sales ‘half’ from last year

Fund of fund sales have rebounded, surpassing the £1bn mark in the second quarter for the first time in exactly a year, according to figures from the Investment Management Association.

By Julia Bradshaw | Published Aug 15, 2012 | comments

Net retail sales reached £1.1bn, which is just over half the £2bn worth of sales seen this time last year.

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

Of the money invested in these portfolios, half was put into external funds with other firms, and half was invested in-house. Looking at the asset classes over the quarter, mixed assets continued to have the highest share of funds under management for funds of funds.

The Mixed Investment 20-60 per cent Shares and Mixed Investment 40-85 per cent Shares IMA sectors accounted for 81 per cent of this.

In contrast, net sales of tracker funds reached their lowest point since the first quarter of 2010 at £312m.

The average net retail sales figure for the previous four quarters was £534m.

However, funds under management for tracker funds was £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.

This means tracker funds’ share of total gross retail sales was 5.3 per cent in the second quarter of this year.

Ethical funds saw outflows of £2m over the quarter, following inflows of £26m in the previous quarter.

Funds under management totalled £6.9bn and they still account for just 1.2 per cent of total funds under management.

Richard Saunders, chief executive of the IMA, said: “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.”

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