Net retail sales of funds of funds reached £1.5bn in Q3 2010, in line with the quarterly average seen over the previous 12 months, said the IMA. The £74m in net retail sales of ethical funds was above the 12 month average of £64m, while £280m in net retail sales of tracker funds on the quarter was over twice the 12 month average of £119m.
“Tracker funds are also increasingly popular, with year to date net retail sales of £599 million, the highest level since 2002,” said IMA chief executive Richard Saunders.
Funds under management for all funds of funds now make up 9.6% of total funds under management, a record level, with balanced funds accounting for 60% of this figure. Equities accounted for 18% of the total, with 2% in bonds, 1% in property and the rest in other funds.
The announcement comes on the heels of the news that increased demand for fixed income products meant global bonds saw their highest selling quarter on record in Q3, with net retail sales of £974m in the three months to 30 September 2010.