U.K. Stock Pickers Rake In Cash as Investors Snub Index Funds
- Active equity funds’ inflows surge ahead of passive rivals
- Market volatility, ESG demand see index trackers lose favor
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Faith in asset managers has finally returned as British investors sidestep index trackers and flock to funds overseen by humans.
Actively managed equity funds in the U.K. raked in 1.3 billion pounds ($1.8 billion) in August compared to just 4 million pounds for their passive rivals, the largest gap since data provider Calastone began tracking the activity in 2015. Stock pickers have hauled in triple the cash of index funds this year, thanks to market volatility and surging demand for sustainable investments.