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Sales of tracker funds hit record highs in October

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
04/12/2013

Retail investors poured £448m into tracker funds last month, the highest level ever recorded, figures reveal.

According to the October sales figures from the Investment Management Association (IMA), tracker funds now account for 9.6% of total funds under management, compared with 7.8% a year earlier.

Elsewhere, equity funds remained the best-selling asset class for the seventh consecutive month, with net retail sales of £976m.

Mixed asset funds were the second best-selling asset class, notching up sales of £343m.

Sales of property funds increased for the ninth consecutive month, reaching £223m, the highest level since April 2010.

Total net retail sales remained strong at £1.9bn, an increase from £1.1bn in October 2012. Funds under management totalled £765bn, a 20% increase from October 2012.

Meanwhile, September’s favourite sector, UK Equity Income, saw outflows of £298m over October making it the worst selling for the month.

The UK All Companies sector took the top position in October, with net retail sales of £307m, the first time the sector has been the best-selling since April 2004.

“It was another strong month for fund sales with retail investors continuing to favour equity funds. Net retail sales of these funds have totalled £9.1 billion so far this year, on course for their best year since 2000,” said Daniel Godfrey, chief executive of the IMA.