Net tracker fund sales reached record highs in the opening quarter of the year, although funds of funds and ethical funds witnessed a fall in popularity.
According to the Investment Management Association, net retail sales of trackers amounted to £661m – up from £528m one year earlier and the highest seen by the association since it started analysing sales in 1992.
Tracker funds under management reached £43.3bn in the first quarter, rising 7 per cent from £40.3bn in the opening three months of 2011.
Net retail sales of FoFs fell from £1.7bn in 2011’s first quarter to just £396m. Funds under management in the class amounted to £64.2bn, compared with £58.8bn in the year before.
Ethical funds garnered £26m in net sales, down from £85m, while assets under management stayed constant at £7.2bn.
The amount of money held in all funds amounted to £3.8bn at the end of the first quarter, down from the £6.2bn one year before.