Bear market hurts active managed funds

richard philbin reduces holdings in his friends provident multimanager growth fund and adds in fixed interest to counter equity falls

The recent performance of the active managed sector is an object lesson in what happens to those who keep faith with equities in a bear market. Active managed funds have returned -36.3% bid to bid, on average over three years to the end of January. This compares with a -30.18% return from the average balanced managed fund and a -10.12% return from the average cautious managed fund over the same period. The active managed sector is primarily differentiated from its peers by the ability of the funds to invest up to 100% in equities compared with 85% and 60% respective restrictions for its...