Funds of funds had their best year on record in 2009, the latest figures from the Investment Management Association (IMA) have revealed.
Last year, net sales for fund of funds increased to £3.89billion – almost four times the 2008 total of £1.38billion, as funds of funds sales accounted for £1 of every £10 invested in all funds.
In addition, funds under management for fund of funds peaked at £42.7billion last year – the highest year on record – representing an increase of 42 per cent on the previous year when the total stood at £30billion.
Commenting, Richard Saunders, chief executive of the IMA said: "Funds of Funds have continued to increase their market share, with net retail sales in 2009 being the highest ever and funds under management the highest year end total on record.
"We are also seeing an increasing proportion going to funds invested with other fund managers, and these now constitute the majority."
Meanwhile, tracker funds also proved increasingly popular with investors as 2009 saw net sales hit a six year peak totalling £313million, while tracker funds under management totalled £27.7billion at the end of last year – their highest year end on record.
However, ethical funds appear to still be feeling the affects of the banking crisis. Despite seeing a £1million increase in net sales to take its total for 2009 to £155.4million, it was significantly below the level seen in 2007 when net sales peaked at £472.8million.
© Fair Investment Company Ltd