Tracker funds reach record high of total funds under management, reports IMA

Tracker funds’ overall share of total assets under management was highest on record at 8.7 per cent in 2012 after totalling £57.4bn, the Investment Management Association reports.

Net retail sales of tracker funds were £1.5bn in 2012, down from the record of £2.1bn in 2011 but still the third highest annual sales ever recorded, the trade body’s figures show.

Funds of funds continue to have record breaking funds under management and market share at 10.8 per cent. Net retail sales were £3.4bn, down from £5.2bn.

However, ethical funds saw the lowest levels in net retail sales since records began in 1992. Net retail sales of ethical funds dropped from £199m in 2011 to £21m in 2012.

Despite this, ethical funds’ AUM also attained record levels last year with £7.5bn now being managed in the space.

IMA chief executive Daniel Godfrey says: “Funds under management reached record levels for funds of funds, tracker funds and ethical funds at the end of 2012.

“Tracker funds had a third strong year of retail sales in succession, helping increase their share of total funds under management to the highest ever level. Funds of funds also increased their market share.”