IMA unveils record £1.9bn tracker fund sales in 2011

Both tracker funds and funds of funds took their highest share of total funds under management on record in 2011, according to the Investment Management Association.

Net retail sales of tracker funds were £1.9bn in 2011, the highest on record and up from £1.7bn in 2010. Funds under management stood at a record £39bn at the end of 2011, equating to a total share of funds under management of 6.8 per cent, also a new high.

Funds under management for funds of funds reached a high at the end of 2011 if £60.2bn, meaning it accounted for 10.5 per cent of total funds, the highest market share on record and up from 9.6 per cent a year earlier.

At £5.2bn, 2011’s net retail sales of funds of funds were the second highest on record, 25 per cent down on the 2010 total of £6.5bn. On a gross retail sales basis, funds of funds sales accounted for £1 in every £9 invested in funds in 2011.

Richard Saunders, chief executive of the IMA, said: “2011 was a successful year for tracker funds, which saw their highest net retail sales on record. Funds tracking equity indices accounted for eight per cent of total equity fund sales, the highest level since 2003.

“Funds of funds also saw their highest ever share of total funds under management, over 10 per cent at the end of 2011.”