Most popular fund of funds investments revealed
In a new report entitled Top of the Fofs, data company Lipper has uncovered which collectives are most popular with European asset managers in the fund of funds arena.
The research looks at the funds in which third party Fofs (those investing in funds run by other investment companies, not just their own in-house offerings) are most likely to invest.
BlackRock came out on top as most popular managerial choice among Fofs, with JPMorgan and Schroders taking second and third spots respectively.
However, the M&G Optimal Income fund was the most popular investment choice overall, with Aberdeen Global Emerging Markets Equity, First State Asia Pacific Leaders, Templeton Asian Growth and Alken European Opportunities making up the rest of the top five.
Bonds are now playing a larger part in portfolios and account for 28.7% of fund of fund investments, says Lipper, with allocation to emerging market bond funds more than doubling from 1.2 to 3.2% in the past three years.
Ed Moisson, head of UK and cross-border research at Lipper, says of the trends: "Inflows to third party funds of funds this year may even approach the 2006 high point of €50.3 billion (£43.5 billion), so it is an opportune time to look closer into where this group of professional fund selectors has been investing."
This article was written for our sister website Money Observer
Generic, loosely-defined term for markets in a newly industrialised or Third World country that is in the process of moving from a closed economy to an open market economy while building accountability within the system. The World Bank recognises 28 countries as emerging markets, including Argentina, Brazil, China, Czech Republic, Egypt, India, Israel, Morocco, Russia and Venezuela. Because these countries carry additional political, economic and currency risks, investors in emerging markets should accept volatile returns. There is potential to make large profit at the risk of large losses.