Cronan MacMahon: Is your 'active' fund really a tracker in disguise?

Amid all the other drama that characterised the close of 2016 came the FCA's interim Asset Management Market Study, which many interpreted as putting the UK's active fund sector ‘on warning. Its findings included the worrying fact that - on average - active funds for sale in the UK underperformed benchmarks after the deduction of annualised charges by around 60 basis points. Needless to say, this isn't great for investors - what's the point in paying a premium in fees for active investment in cases where a tracker may not only be cheaper but could also provide a better return? In many...