Sales totaled £3.8bn for the first six months of 2011, while Q2 sales totaled £2bn, above the quarterly average of £1.8bn for the previous four quarters.
“Investors have continued to show appetite for funds of funds and the first half of 2011 saw the highest net retail sales of funds of funds on record,” said IMA CEO Richard Saunders. “In gross retail sales terms, £1 in every £8 invested in funds was invested in funds of funds in Q2.”
The IMA said funds under management for the sector reached £63.5 billion at the end of Q2, accounting for 11% of total funds under management.
Balanced funds – consisting of active managed, balanced managed, cautious managed and UK equity and bond income – accounted for the highest proportion of total funds under management at 57%. Gross retail sales of balanced funds totaled £1.86bn in Q2, accounting for 49% of total funds of funds gross retail sales.
“Tracker funds also reported strong sales and have seen their market share approach 7% of total funds under management for the second quarter running,” said Saunders.
Net retail sales of tracker funds totaled £313m in Q2. However, this was below the quarterly average of £515m for the past four quarters.
The IMA also revealed sales of ethical funds hit their highest quarter since Q4 2007, totaling £94m in Q2.
