Fund buyers split over 2017 conviction plays

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”.

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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.