The popularity of asset allocation funds, such as those in the Cautious, Balanced and Active Managed sectors, rose significantly last year during turbulent times for the markets, S&P says.
The ratings agency says the number of asset allocation funds it was asked to review was 119 in 2007, up from 79 the year before, which shows the demand from clients for the sector. “We believe there will be a continued good run on demand for asset allocation funds which offer exposure to the potential upside as markets recover while protecting capital through diversification,” Glenn Meyer, S&P funds services lead analyst says. S&P said there were a number of new funds launched to take advantage of the broader remit now allowed by the funds under UCITS III. It believes there will be incre...
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