Fund of funds sales in the UK exceeded £1 billion ($1.6 billion) in the second quarter of 2012 for the first time in a year, according to the Investment Management Association.

The £1.1 billion in net retail sales of funds of funds during the three months ended 30 June this year was, however, markedly lower than the £2 billion recorded in the same period in 2011, the trade body said.

Funds under management in fund of funds stood at £63.6 billion at the end of June, a 4 per cent improvement year-on-year.

Total fund sales were £4.2 billion during the second quarter this year, down from £7.5 billion in 2011.

Assets invested in tracker funds have also increased by 4 per cent since the end of June last year, from £42.9 billion to £44.7 billion. Tracker funds had net retail sales of £312 million in the second quarter, down from £529 million a year ago. Of the 85 tracker funds, four out of ten track the main UK indices - the FTSE All Share and FTSE 100, representing the 100 biggest companies in the country, - the IMA said.

By contrast, the IMA said that assets invested in ethical funds have decreased by 4 per cent in the past year, from £7.2 billion on 30 June to 2011 to £6.9 billion on 30 June 2012. Such funds saw outflows of £2 million during the last quarter, following an inflow of £26 million the quarter before that. The average net retail sales figure for ethical funds over the previous four quarters is £35 million, with £101 million in the second quarter of last year.

The IMA is the trade body for the UK's £3.9 trillion asset management industry, both retail and institutional.