UK fund selectors tilt towards active management amid global uncertainty
By Laura Purkess, 19 Aug 26
More than half (53%) of those surveyed said they are moving significantly towards active strategies
The majority of UK fund selectors are tilting towards active management amid global uncertainty, higher interest rates and stretched valuations in passive trackers, according to new research by asset manager Rathbones.
The study, which surveyed independent financial advisers, discretionary fund managers (DFMs) and private banker fund selectors managing around £234bn for retail clients, showed a decisive shift in sentiment towards stock-picking strategies.
More than half (53%) of those surveyed said they are moving significantly towards active strategies while maintaining their core equity exposures. This shift vastly outpaces the 18% who said they are switching to defensive and tangible assets, and the 29% moving into cash and short-duration bonds.
Momentum for the shift is already building. According to Rathbones, 57% of fund selectors now feel “much more favourable” towards active management, compared to 39% who view passive strategies more favourably. And the trend is set to accelerate into next year: an overwhelming 95% of respondents expect their allocation to active strategies to increase in 2027, with 13% forecasting significant increases.
Alongside the pull factors of active management, the survey exposed growing concerns around passive index tracking. Almost all respondents (99%) expressed concern that passive growth trackers are currently over-exposed to companies with stretched valuations.
And 91% agreed that certain pockets of the market – specifically small caps and emerging market debt – are fundamentally unsuitable for passive indexing.
Tags: Rathbones
