Funds of funds are taking the U.K. by storm, as assets under management soared 56% in 2005, while sales zoomed ahead 67%, according to figures from the Investment Management Association. The IMA found that fund of funds net retails last year were £2.3 billion (US$4.3 billion), double that of decade ago and representing more than one-quarter of all sales in 2005. Even so, FoFs represent a relatively minuscule portion of the £3 trillion (US$5.6 billion) industry. “Funds of funds have taken a very big portion of the [retail] market and most of the big players are looking to build fund of funds businesses as there is clearly a demand out there,” IMA CEO Richard Saunders told IFAonline.
