Why 2016 is the Year to Back Active Fund Management

The FTSE 100 returned next to nothing in 2014 and 2015; thanks predominantly to oil prices halving and then halving again. What can we do to ensure positive returns this year?

Emma Wall 14 January, 2016 | 4:38PM
Facebook Twitter LinkedIn

What did you make on your investments in 2015? Chances are if you had exposure to the major markets 2015 was not among your most profitable years. Unless of course, you were savvy enough to have picked an actively managed fund that avoided the pitfalls – energy stocks and banks in the UK – and ratcheted up your exposure to those equities which bucked the general trend.

A rising tide lifts all boats; the multi-year stock market rally in the US and UK following the financial crisis meant that almost everybody who had skin in the game, whether it was an ETF tracking the FTSE 100 or an actively managed fund selecting domestic stocks thematically, almost everyone made a profit.

Flat Market Syndrome

But then the bull ran out of steam. The FTSE 100 returned next to nothing in 2014 and 2015; thanks predominantly to oil prices halving and then halving again. Oil and gas stocks, and companies those related with mining make up such a significant part of the blue chip UK stock index. Banking stocks also struggled, battered by never-ending fines, and supermarket stocks saw their prices fall as the discount stores stole market share.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Emma Wall  is former Senior International Editor for Morningstar

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement