A ratings group has launched a new service for passive funds after finding there was a lack of high quality research explaining how to use them effectively.
The move by RSMR has provided a list of 32 rated funds across the main IA sectors. RSMR reviewed the passive market by looking at the six big providers within the UK.
The list was determined "following a rigorous assessment of the passive manager's investment team, process, and risk management and compliance procedures coupled with in-depth meetings with each manager".
This resulted in a list of funds from BlackRock, L&G and Vanguard.

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Chris Riley, investment research manager at RSMR, said: "Passive management is becoming a more popular choice for advisers when creating portfolios for their clients and many now consider a mix of tracker funds or passives, which can complement actively managed funds or investment trusts in certain areas.
"However there is a lack of quality research explaining how to use passive funds effectively and how to ensure appropriate due diligence is in place to support recommendations and meet FCA requirements.
''We have responded to this challenge by developing the new rating service and providing guidance and support on the sector.''
The full list of 32 rated passive funds along with supporting fund factsheets can be accessed via the RSMR Direct service for advisers.
A guide to passives will be added to help advisers understand the benefits of passive management and how it can be used as part of a wider client portfolio.
Geoff Mills, RSMR director, said: "Our rated passive fund list helps advisers choose from the main players, giving confidence that each fund has been closely reviewed and awarded the RSMR seal of approval.
''We now have quality research available all in one place with our market-leading 'R' ratings on active and passive funds, SRI funds, multi-asset funds and investment trusts. We believe this is the most comprehensive qualitative-focused service available for advisers in the UK today.''