It didn’t quite match up to the US technology sector, but 2024 was a decent year for UK active managers. This is particularly true given the inauspicious backdrop of constant outflows and a feeble economy.
However, with the market still cheap, there is the potential for the UK market to build self-sustaining momentum in the year ahead.
The average UK Equity Income fund is up 8.9%, with the average UK All Companies fund just behind at 8.4%. UK Smaller Companies have started to recover from their long run of weakness, rising 6.7%. Active funds have generally outpaced the major indices, with the FTSE All Share up 4.7% for the year to date. At a tough time, it feels like a creditable performance.
Interest-rate cuts have helped, undoubtedly, but here too, the Bank of England has been notably stingier than the Federal Reserve or European Central Bank. There may have been tailwinds, but they have been more powerful for other stock…
