Tracker funds’ share of total industry funds under management hit a fresh record at the end of 2012, nearing 9% of FUM, according to the Investment Management Association (IMA).

Figures from the trade body show funds under management in trackers stood at £57.4bn by the end of last year, up 36% on the £42.3bn reported at the end of 2011.

This rise helped trackers increase their market share to 8.7% of total FUM, up from 7.4% in 2011.

Funds of funds FUM also reached its highest level in 2012, rising from £60.3bn to £71.2bn, with market share also rising to a record 10.8%.

Net retail sales of ethical funds, however, were the worst seen since IMA began recording data, dropping from £199m in 2011 to £21m in 2012.

Total ethical FUM rose from £6.7bn to £7.5bn last year, accounting for 1.1% of FUM by year-end.

"Tracker funds had a third strong year of retail sales in succession, helping increase their share of total funds under management to the highest ever level," said IMA chief executive Daniel Godfrey.

"Funds of funds also increased their market share. Ethical fund sales however, were the worst in net retail sale terms since the IMA began collecting data 20 years ago."