Rotation into FTSE 100 threatens active outperformance record

Active fund managers must rise to the challenge of a rotation into FTSE 100 stocks after years of outperformance, wealth managers have warned.

Analysis by Cornelian Asset Management shows the average active manager has outperformed even the runaway FTSE 250 index for the past five years. But the firm’s CIO, Hector Kilpatrick, said active managers may find it a challenge to outperform in future. He said: “The obvious question is whether the outperformance can continue, and whether the recent dramatic rotation out of the FTSE 250 into FTSE 100 stocks over the past six weeks or so portends a poorer period of performance for the average active fund manager.” The IMA UK All Com­panies sector returned 104% net of fees in the five ...