Investment in funds of funds – where investors’ money is placed across other managed funds – has hit a record high for the second quarter of 2010.
The UK Investment Management Association said such investments now represented almost £1 in every £11 currently in managed funds.
Net retail sales between April and June 2010 totaled £2.3billion. Director of markets at the IMA, Jane Lowe, said: “Quarter 2’s fund statistics reveal strong inflows into Funds of Funds, continuing the positive trend seen in recent quarters. Both tracker and ethical funds also saw net retail sales well above the average of recent quarters.”
The majority of these funds are being invested my managers into funds run by other external firms. The total invested in this way now stands at £26.7billion.
Funds of funds, almost sometimes called multi-manager funds, allow investors to have a spread of investments through one centrally managed amount.
The quarterly figures from the IMA recorded the ‘balanced’ asset class as the most common type of investment for funds of funds, with ‘cautious managed’ as the second highest selling class.
There have been promising signs for other forms of diverse investments with smaller companies funds listing improved performance.
The Henderson Smaller Companies investment trust has published results for the year ending 31 May 2010 posting a net asset value of £208million, up from £156million in 2009.
The Standard Life Smaller Companies fund has seen growth over 30 per cent since 2009.
© Fair Investment Company Ltd