Spain has enjoyed the fastest growth by a clear margin in net sales of funds of funds out of all the...
Spain has enjoyed the fastest growth by a clear margin in net sales of funds of funds out of all the European markets over the past three years, according to Feri Fund Market Information. Spain's net sales were well over twice the next biggest market for fund of funds sales, which was France.
From the start of 2002 until the end of March 2005, the total net sales of funds of funds that invest in third-party funds in Spain reached E13.37bn. It was followed by France on E5.88bn, the UK (E4.79bn), Italy (E4.47bn), Germany (E3.46 billion), Belgium (E2.63bn) and Switzerland (E1.21bn). All the other European countries had net sales of less than E1bn.
Cross-border funds of funds still comprise a small proportion of the European market. Cross-border sales at E2.63bn were 6.47% of the total across Europe, according to Feri.
All other individual countries had net funds of funds sales of less than E1bn over the past three years. Only the Netherlands had negative sales, with a drop of E6.5m. Total net sales across Europe also fluctuated widely between the start of 2002 and the end of March 2005. The best year was 2004 with net sales of E23.28bn while the lowest was E4.72bn in 2002. The first three months in 2005 alone, however, had fund of funds sales of E40.72bn.
Mauro Baratta, director of European research at Feri Fund Information, said demand for funds of funds varies substantially between European markets. "The growth in Spain is partly due to fund of funds being wrapped with capital protection that has caught investors' attentions," he said. Not only are the funds of funds spreading risk through diversification across managers and asset classes but they are also offering downside protection.
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