Tracker funds recorded their best ever quarterly sales figure in the third quarter of this year, according to data from the IMA.
A net £352m was put into passive funds by retail investors during September, bringing the third quarter figure to more than £1bn, the highest on record. Trackers now make up 9.6 per cent of assets under management by IMA members.
The figures come amid growing criticism of high charges and underperformance from active managers as the long-running ‘active versus passive’ debate has re-emerged.
Multi-manager funds also hit record levels of assets under management in September following net retail inflows of £286m, bringing total assets to an all-time high of £83.9bn.
Investors withdrew a net £116bn from the IMA Sterling Corporate Bond sector during the month, while the IMA UK Equity Income sector topped the sales charts with a net £358m inflow.