Investors flock to computer-run funds as managers fail in market sell-off

Investors have been piling money into passive funds during the coronavirus pandemic as active fund managers failed to beat the market in a downturn, supposedly one of the selling points of human stock pickers.

In total, £244m was withdrawn from global markets in March, according to research firm Calastone, but this relatively benign headline figure hides a deeper trend. 

Overall £1.4bn was added to passive funds, which aim to mirror a market or sector, while £1.7bn was removed from active funds, which aim to use stock selection to outperform the wider market.

Robin Powell of the Evidence Based Investor, a

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Fund managers flee to cash as coronavirus ‘second wave’ sends investors into panic

Professional investors have rushed to cash amid the coronavirus market crash with levels in fund manager portfolios the highest they have been since the aftermath of the September 11 terror attacks in 2001.

Many fear the impact of coronavirus on markets is far from over, according to a new survey. The average manager now has 6pc of their portfolio in cash, up from 5pc in March.

The survey authors, Bank of America Merrill Lynch, said the new cash position was significantly higher than the average of 4.6pc over the past decade. This would traditionally be a sign of investors being

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