Ashby urges IFAs to limit tracker exposure

Ashby says with the addition of two new resources companies to the blue-chip index, UK equity tracker funds are now too heavily weighted to historically very cyclical industries. At the end of March, UK tracker funds had £24.5bn of funds under management and accounted for almost a third of net retail inflows over Q1. Ashby says while index trackers offer a cost-effective entrance to the UK equity market, advisers may not realise how concentrated the indices have become. “The top ten stocks in the FTSE 100 Index now includes just one pharmaceutical stock, one telecoms company and one...