The performance of funds of funds improved significantly last year, with returns growing to the highest level since the study began 15 years ago. As a group, funds of funds achieved a total return of 12.4% in 2021, compared to 1.7% in 2020, driven by the industry’s post-pandemic recovery.
Key highlights include:
- Of the investors targeting Europe, 7.0% are expected to increase their allocation to fund of funds in 2022, compared to 1.7% in 2021
- Assets under management (AUM) by funds of funds surged to a record high of €52.6 billion demonstrating a year of increased investor appetite for the segment
- 2021 saw an increased spread upwards as several funds of funds reported exceptionally strong performance
- In 2021 non-core funds of funds outperformed core funds of funds, with total returns of 14.4% and 12.3%, respectively
- Funds of funds with a global strategy account for the largest share of the Universe, representing 77% of the total by number, and 95% of the total NAV