View more on these topics

Tracker fund business reaches a record high

Net tracker fund sales hit a record high of £661m in the first quarter of the year, according to latest figures from the Investment Management Association.

Net retail sales of trackers rose by 25 per cent from £528m in the first quarter of 2011 to £661m this year. This is the highest net sales figure since the IMA’s records began 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.

In contrast, net retail sales of fund of funds fell 77 per cent from £1.7bn in the first quarter of 2011 to just £396m this year. Funds under management in the class rose by 9 per cent to £64.2bn from £58.8bn in 2011.

Net sales of ethical funds fell to £26m, down by 69 per cent from £85m in the first quarter last year, while assets under management stayed constant at £7.2bn.

The total assets held in all funds fell to £3.8bn at the end of the first quarter, down by 39 per cent from £6.2bn.

Evolve Financial Planning director Jason Witcombe says: “The rise in popularity of trackers does not surprise me. More and more advisers are recommending them to clients and the consumer press has run a lot of stories about the high costs of active fund management of late, so the general public is being more inquisitive about fund costs.

“Selection of passives will be driven by cost, as one would expect all funds to do what they say on the tin in terms of tracking an index. Advisers will also look to those firms who go that extra mile in terms of producing useful research to support the index tracking proposition, which can be passed on to clients.”


Santander appoints CIO as Bearman leaves

Santander Asset Management has named Butterfield Bank’s David Stewart as its chief investment officer following the departure of John Bearman. Stewart was group chief investment officer at Butterfield Bank, and previously head of investments at MGM Assurance. Bearman left Santander to become chief investment officer at Thomas Miller Investment. Thomas Miller Investment chief executive Mike […]

BSA says mortgage prisoners will be hit by strict affordability rules

The Building Societies Association says there will still be a significant amount of so-called “mortgage prisoners” despite transitional arrangements in the mortgage market review designed to avoid this. The FSA estimates around half of the 10.5 million people who took out mortgages between 2005 and 2011 could be prisoners because of high loan-to-value ratios, negative […]

BBA chief Knight to join Energy UK

Angela Knight, the outgoing chief executive of the British Bankers’ Association will take up the reigns at the trade body Energy UK when she steps down in July. The BBA announced Knight would be stepping down last month and she had been tipped to become chair of the Financial Conduct Authority. As head of the […]

Derek Stuart: where to find value in the UK?

Derek discusses a number of Œself-help stories as examples of where he is finding good opportunities in the UK With the FTSE trading at historically high levels, many investors have questioned whether UK equities continue to offer value. But, as Derek points out, the headline figures mask many opportunities at a sector level. He has […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm