Fund of funds sales halve in 2012

Richard Saunders 450 Index

Sales of fund of funds have halved in the first nine months of 2012 in comparison to 2011, according to figures from the Investment Management Association.

Fund of funds saw net retail sales of £2.2bn in the first nine months of this year, compared to £4.6bn over the same period of 2011.

Fund of funds assets under management stood at £67.5bn at the end of the third quarter of this year, up from £57.4bn at the same point 12 months ago. They now represent a record 10.7 per cent of total funds under management.

Tracker funds recorded £263m of net retail sales in the third quarter of this year, their lowest total since the first quarter of 2010, while ethical funds recorded a £33m outflow in the third quarter, their highest outflow ever recorded.

IMA chief executive Richard Saunders says: “Funds of funds continued to be popular with investors in the third quarter of 2012. While sales were lower than a year ago, in common with the wider industry, total funds recorded another new high relative to the industry as a whole.  A similar picture emerged for tracker funds, which have been on an upward trend relative to the rest of the industry for the last couple of years. In contrast, ethical funds have now seen net outflows in three of the last four quarters.”