Wellian Investment Solutions found a choice of 143 passive funds in the UK, based on Financial Express data.
“The Investment Association splits all unit trusts/Oeics into one of 38 sub-sectors and applying these 143 funds into the IA categories, you will find representation in 21 of the 38,” says chief investment officer Richard Philbin.
“Looking a little deeper the choice starts to breakdown somewhat. Of the 143 passive funds, 48 are in just two sectors: UK All Companies or UK Equity Income. 44 of those have a three-year track record.”
He adds: “The UK equity market accounts for c10% of the global equity index. Of the 143 passive funds in existence and 1/3 focusing on the UK, the choice to build a broadly diversified portfolio looks less easy to achieve.”
After a record-breaking year for UK equities, these funds will be sitting pretty right now, but with calls for greater diversification in portfolios, both geographically and into multi-asset and alternatives solutions, many are finding their options looking less than sweet.
