Proportion of UK active funds underperforming market jumps to 87% in 2016

Latest data from S&P Dow Jones

Nearly 90% of UK equity actively-managed funds underperformed the stockmarket last year, according to new data from S&P Dow Jones Indices.

According to the Financial Times, S&P data shows 87.2% of UK equity funds underperformed in 2016, up significantly from 22% in 2015. The average UK equity fund returned 11.2% last year, compared to 17.1% by the S&P's UK equity index; the FTSE 100 returned 14.4% over the year. The index provider attributed this poor performance to managers being "caught off guard" by the election of US President Donald Trump and Britain voting to leave the EU. Odey: Active managers are being driven out by 'mindless' passive investing It has also been blamed on volatility in the financials sector ...