Overlooked tracker funds still offer favourable returns

Although the IT industry has less to offer in terms of UK tracker funds the presence of discount volatility allows their funds the opportunity to enhance their performance by a reduction in discount levels

These days it is all too easy for investment professionals to be a bit snooty when it comes to tracker funds. They lack glamour in relation to their active counterparts. These passive funds are managed by machines and as such are burdened with innate limitations which may not fetter collectives run by talented people adding value through skill and experience. In addition advisers may find it more comfortable to recommend clever fund managers than investing their clients' cash in a computer programme. However it is difficult to escape the fact that the majority of actively managed funds fail...