The report, which examines 2,100 third party FoFs with over €175bn of assets in 10 domiciles, noted the second most popular fund, Aberdeen Global Emerging Markets has some 179 FoF investors. Also popular among European multi-managers are First State Asia Pacific Leaders and Templeton Asian Growth, each with 142 FoF investors, the July report reads.
According to the Lipper report the three most widely held companies with FoFs are: Blackrock, JPMorgan and Schroders. The report’s author, head of UK & cross border research Ed Moisson, noted Blackrock has more than 1,250 FoF clients. By comparison, fourth ranked Fidelity has some 877.
In looking at allocation trends among European FoFs over the past three years, Moisson noted managers have increased allocations to emerging market bond funds from 1.2% to 3.2%. Exposure to global equity funds may have fallen from 4.7% to 4.1%, but those to global equity income alternatives has risen to 1.3%.
Regional exposures remain dominant with US equities remaining popular across European-based multi-manager funds with an aggregate holding of 7.9%, Moisson said. Unsurprisingly there has been a retreat from European equity funds, he noted.
Moisson added unfettered products continue to grow over fettered products, increasing to now account for 63% of the industry Europe-wide. The Lipper report also noted that overall both the UK and cross-border FoFs industries have doubled in size over past five years, to €61.6bn and €42.3bn respectively.
