The rise of passive funds has led the products to control a record share of assets under management in UK-domiciled funds, even as net retail sales fell year-on-year, according to new research.

Index-tracking funds represented 8.7% of the total assets under management in UK domiciled funds offered by members of the Investment Management Association at the end of 2012, according to data published on Monday. That figure is up from 7.4% at the end of 2011.