Fund of funds sales exceed £1 billion for first time in a year

growthFund of funds (FoF) net sales in the UK exceeded £1 billion (€1.2 billion) in the second quarter.

The Investment Management Association said this was the first time the sector had exceeded £1 billion in net sales since Q2 last year, though the figure for the year-before period was higher at £2 billion.

Funds under management for FoFs totalled £63.6 billion at the end of Q2, accounting for 10.6% of total funds under management.

Sales of tracker funds, which have been rising in recent years, were slower, but the sector continued to gather funds under management.

Richard Saunders, IMA chief executive, said: “Net retail sales of funds of funds went above £1 billion in this quarter for the first time in a year. While the second quarter saw more subdued sales of tracker funds, their share of total funds under management has been rising for about four years and now stand at 7.5%.”

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