Aggregate AUM for funds of funds reached £71.2bn in 2012, up from £60.3bn at the end of 2011. Tracker funds are worth a combined £57.4bn, an increase of around £15bn on the previous year’s figure, while ethical funds now have £7.5bn under management compared to £6.68bn in 2011.
Funds of funds and tracker funds also held record market shares, accounting for 10.8% and 8.7% of all funds in market respectively at the end of 2012.
However, ethical fund sales had their worst year in terms of net retail sales for at least 20 years, and the final figure stood at £0.02bn.
Net retail sales fell to £3.4bn for funds of funds, from £5.2bn in 2011 and tracker funds saw decline from £2.1bn to £1.5bn.
Capital in the funds of funds sector was split almost 50/50 between funds run by the same firm (£36.1bn) and those managed by different asset management firms (£35bn). Mixed assets accounted for the highest proportion, 57%, of total funds under management.
