Firms with private wealth more likely to choose an actively managed fund

Firms and individuals involved with global private wealth management could be more likely to invest in an actively managed fund rather than a passive one in 2012.

That is according to Legal and General Investment's latest What Matters Investment Index.

Its main finding was that 79 per cent of those polled are planning to invest in an actively managed fund over the next 12 months.

That is compared to just 31 per cent who intend to invest in a passively managed fund.

It was also revealed that 57 per cent invest private wealth into actively managed funds on their own, while 26 per cent invest in both an active and passive fund, with just five per cent investing in a passive fund alone.

Simon Ellis, managing director at the firm, said: "It is interesting to see a pick up in intentions to use active funds."

An actively managed fund is one where the manager makes specific investments with the goal of outperforming an investment benchmark index. In passive management, the manager does not try to outperform the benchmark index.

If you would like to discuss how we can assist you further please contact us on Tel: +44 (0)20 32077400 or email.

 ADNFCR-2318-ID-800692606-ADNFCR