Active managers set to make strong post-coronavirus comeback

Exchanges to also emerge better

Fund managers have been tipped to emerge from the Covid-19 crisis in a better position than other financial services sub-sectors due to high recurring revenues and economies of scale, according to research.

A report from adviser and broker Finncap Group said fund managers would also likely benefit from increased interest in active management, which it predicted would become an important investor trend following the Q1 Covid-19 market crash. The report added exchanges were also likely to emerge from the crisis in a stronger relative position. However, it predicted lenders would be at a disadvantage in the post-coronavirus environment. The FTSE All-Share fell 26.6% in the first three months of the year and while wealth managers were the only financial services subsector to outperform the m...