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Trackers record lowest sales for two years

Net retail sales of tracker funds of £312m for the second quarter are the lowest since the first quarter of 2010, according to the Investment Management Association.

The average net retail sales figure for the previous four quarters is £534m. Tracker fund net retail sales fell £217m from £529m in the second quarter of last year to £312m this quarter.

Net retail sales of funds of funds for the second quarter have exceeded £1bn for the first time in a year. However, this was still down by £0.9bn from £2bn in the second quarter of last year to £1.1bn.

Ethical funds faced outflows of £2m, compared to £101m of net retail sales in the second quarter of last year. This follows £26m of inflows the previous quarter.

Funds under management for fund of funds totalled £63.6bn at the end of the second quarter of this year, accounting for 10.6 per cent of total funds under management.

Tracker funds under management were £44.7bn at the end of June 2012, accounting for 7.5 per cent of total funds under management, up from 7.1 per cent a year ago.

Ethical funds under management totalled £6.9bn at the end of June 2012. They account for 1.2 per cent of total funds under management.

IMA chief executive Richard Saunders says: “Net retail sales of funds of funds went above £1bn in this quarter for the first time in a year. While the second quarter saw more subdued sales of tracker funds, their share of total funds under management has been rising for about four years and now stand at 7.5 per cent.”

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