Investors back funds of funds amid turmoil

Funds of funds remain popular with investors amid market turmoil, according to the Investment Management Association’s quarterly statistics published last week.

Funds under management in funds of funds at the end of the fourth quarter of 2007 reached £34.3 billion, up from £33.3 billion at the end of the previous quarter and an increase of 18% on the same quarter in 2006.

Balanced funds accounted for most funds under management, representing 69% of assets, followed by 18% in equities.

Total net sales of funds of funds accounted for £834.1m and included £343.2m net retail sales.

The most popular sector was Cautious Managed, accounting for inflows of £465.7m. The most popular sector for the year overall was Cautious Managed, with £1.6 billion total net sales.