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Analysis of new fund launches from independent financial research company Defaqto reveals an 87% increase in the number of funds launched that permit the use of derivatives.
Fraser Donaldson, Insight Analyst for Funds at Defaqto said: “The use of derivatives as an investment tool are growing in prominence which is not overly surprising given the uncertainty in the economic and financial climate. The decline in the launch of UK only investment funds is clearly linked to declining demand for the sector with many advisers seeking potentially better returns elsewhere.”
Defaqto’s analysis found the following trends in fund launches:-
|
Fund type
|
Fund launches in first half of 2009
|
Fund launches in first half of 2010
|
% increase / (decrease)
|
|
Funds launched that permit use of derivatives for investment purposes
|
16%
|
30%
|
87%
|
|
Multimanager funds launched
|
23%
|
30%
|
30%
|
|
Funds launched that solely invest in the UK
|
29%
|
18%
|
(39%)
|
Mr Donaldson added: “The increased popularity of multimanager funds provides a vehicle by which investors can back the judgement of the multimanagers who can weight their holdings by investing their portfolios in the fund sectors and managers that they rate highly.”
