According to figures from the IMA, the results bring an end to six previous quarters of outflows, the most recent being an outflow of £59.6m in the final quarter of 2007.
Totals fund under management in trackers reached £24.5bn at the end of Q1 2008, a fall of 10 per cent from the previous quarter and 7 per cent down from the total of £26.7m at the same point 12 months ago.
Meanwhile, total funds under management in fund of funds reached £32.6bn, a loss of £1.6bn from the previous quarter, but a rise of 8 per cent from the same point in 2007. Total net sales in fund of funds were £637.3m, a fall from £834m in the previous quarter.
Ethical funds under management also saw a loss of £500m to £5.4bn. Retail inflows were also shredded to £27.6m, compared to £99.7m in the last three months of 2007.
IMA director of markets Jane Lowe says: “Tracker funds saw a positive quarterly inflow, with a good month in March 2008, after six previous quarters of outflows. This may reflect the cautious improvement in overall net retail sales of funds seen during February and March 2008. Investment in funds of funds has remained positive throughout, and although funds under management were down on the last quarter they remain ahead of the same quarter in 2007.”