Mona Shah, a senior research analyst at Rathbones, added: “The current environment isn’t really relevant. You have got to have a long-term time horizon if you are going to use a concentrated strategy.”
SBN Wealth Management’s Dan Farrow said the industry should be taking “directional risk” to avoid the risk of becoming “closet trackers”.
However, Mr Farrow’s approach for 2017 has been to put 75 per cent of client portfolios into passives – because of both costs and the downside risks facing active propositions.
“Sterling could really damage many active funds that have ridden the wave of Brexit currency turmoil,” he said.