UK retail investors are increasingly turning their backs on index-tracking funds, latest figures from the Investment Management Association show.
The fourth quarter of 2007 saw net outflows from tracker funds of £59.6m, bringing total net outflows from the funds to £322.6m since the beginning of 2006. The only positive quarter for net retail sales of tracker funds during this period was Q2 2006.
However, with more than £27bn of funds under management, tracker funds as a proportion of the whole UK fund market have remained fairly steady, falling from 5.8% to 5.4% over the period.
Research by Deutsche Bank published at the end of January showed assets under management in exchange-traded funds across Europe stood at €83.77bn (£62.74bn), up about 10% on the previous week alone, suggesting that investors are increasingly turning to low-cost ETFs to gain exposure to market movements.
Three year strategic review
Has run Cautious Managed fund since 2011
What’s right – not what sells
Richards fires back at committee report
Available on Investcentre platform