Tracker funds post record outflows

Tracker funds experienced their highest ever outflows during the first quarter of this year, according to the Investment Management Association.

The sector saw net outflows of £195m, reversing the trend experienced in the last three quarters. However, tracker assets under management still remain at a record £29.5bn, up 59% on Q1 2009. IMA chief executive Richard Saunders says despite this decline, the Retail Distribution Review could create an opportunity for the sector. “It surprises me tracker funds do not account for a bigger proportion of the market. One reason for this could be they pay lower commission,” he says. “I think RDR could create opportunities for low cost products such as trackers and ETFs as advisers move ...