View more on these topics

IMA Q2 stats reveal 2% increase in fund of funds

Fund of funds remain resilient but sales show increasing diversification amongst investors, according to the IMA’s quarterly statistics.

Funds under management in fund of funds at the end of Q2 2008 reached £33.3bn, up 2 per cent from £32.7bn in the previous quarter. Balanced funds continued to account for the majority of funds under management, representing 67 per cent of assets, followed by 19 per cent in equity funds.

Net sales of fund of funds totalled at £1.1bn for the second quarter, up 67 per cent from £639m on the previous quarter. The most popular sector was specialist accounting for net inflows of £447m closely followed by cautious managed with £417m net sales.

Tracker funds under management for the second quarter fell 13 per cent to £23.8bn from £27.4bn in Q2 2007. Retail sales saw a net outflow of £0.7m in Q2 2008 compared with an inflow of £64.3m in in Q1 and an outflow of £15.3m in Q2 2007. The most popular distribution channel for gross retail tracker sales was intermediaries, accounting for 64 per cent of sales.

Ethical funds under management were £5.2bn for the quarter down from £5.7bn for the same period last year. Retail sales saw a net inflow of £49.5m, compared to £137.7m in Q2 2007.

IMA chief executive Richard Saunders says: “Funds of funds sales have proved resilient over the last nine months, while retail sales in other sectors have slowed down markedly. Sales continued to be buoyant in the second quarter. This almost certainly reflects a wish by investors and their advisers to take advantage of the diversification they can offer in turbulent markets, but also reflects a longer underlying trend to invest in this product type.”

Recommended

NU orphan cash deal disappoints advisers

Advisers feel let down by the Norwich Union £1bn reatt- ribution deal reached last week after nearly two years of talks with policyholder advocate Clare Spottiswoode.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com