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.
SWIP multi-manager head Mark Harries is moving back into equities, after halving his exposure following last August's sell-off.
After a volatile start to 2012, equity markets have staged a prolonged rally in recent weeks.
Kames Capital bond manager Stephen Snowden said liquidity in the investment grade corporate bond market has fallen 80% since 2007, which could create difficulties for managers trying to manoeuvre out of larger positions in this space.