Record quarter for fund of funds sales, says IMA

Funds of funds have seen their highest ever quarter for net retail sales, with inflows of £2.3 billion during the second quarter, £1.3 billion more than in the same quarter last year.

According to the latest figures published by the Investment Management Association (IMA), assets under management (AUM) rose by £13.2 billion, or 40%, to £46.3 billion.

“Funds of funds continued the positive trend seen in the recent quarters aided by new fund of fund offerings in the market”

Meanwhile, retail sales of tracker funds fell to £202m over the second quarter this year, or £78m less than in the same quarter last year. AUM rose by 26% to £27.1 billion.

Ethical funds saw £98m of inflows, £106m more than in the second quarter of last year, where the sector saw outflows of £8m. AUM rose by 22% to £5.6 billion.

Tracker and ethical funds saw net retail sales well above the average of recent quarters. Ethical fund sales were the highest in the past year and a half.

Funds of funds continued the positive trend seen in the recent quarters, aided by new fund of fund offerings in the market. The IMA figures show that in the second quarter of this year, funds of funds accounted for almost 10% of gross retail sales. (article continues below)

Fund of funds’ AUM remained at the record level reached in the first quarter this year and account for 9% of AUM overall.

Within the funds of funds sector, the balanced asset class accounts for 60% of total assets managed.

In terms of net retail sales, the Unclassified sector witnessed inflows of £1.5 billion, accounting for 51% of all net retail sales in the funds of funds sector. Cautious Managed funds were the second highest selling area in the sector, accounting for 18% of all net retail sales.

Tracker funds accounted for 3% of gross retail sales of all funds, while ethical funds accounted for 0.9%.