'Mediocre' funds under pressure as All Share beats UK All Cos

Over the past two decades the FTSE All Share has beaten the majority of funds in the IMA UK All Companies sector, adding weight to the view the funds industry is in dire need of consolidation ahead of RDR.

Research carried out by Thames River multi-manager duo Rob Burdett and Gary Potter ranks the FTSE All Share in the 39th percentile over the past two decades, beating the sector average by 1.34%. The superior return from the index excludes active management fees, which would compress returns further. The data shows the FTSE All Share posted second quartile performance over the vast majority of timescales, and produced top quartile returns in 1991 and 2011. Over the past five years, on an accumulative basis, only 71 funds in the UK All Companies sector have beaten the index. This is equ...