Fund of funds (FOF)

“fund of funds” (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment. A fund of funds may be ‘fettered’, meaning that it invests only in funds managed by the same investment company, or ‘unfettered’, meaning that it can invest in external funds.
There are different types of ‘fof’, each investing in a different type of collective investment scheme (typically one type per FoF), for example ‘mutual fund’ FoF, hedge fund FoF, private equity FoF or investment trust FoF but the original Fund of Funds was created at First London Securities PLC.

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