Trackers now high risk

Professional Adviser
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benchmarking against the UK STock market is a high-risk strategy, says edinburgh's Waugh

The UK stock market has become so highly concentrated that benchmarking against it is a high-risk strategy, according to Edinburgh Fund Managers. For that reason tracker funds and closet trackers will struggle this decade, according to Robert Waugh, head of UK equities at Edinburgh. Waugh said if tracking the All Share index today, 53%, or more than half the investment would be concentrated into four sectors. The largest, representing 18%, is banks. Although these companies are not currently expensive, said Waugh, there are concerns about bad debts given there have already been a numb...

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