Virgin Direct has slammed actively managed funds once again, this time using research it commissioned from the WM Company, to underline its case.
Virgin says it has timed the report to co-incide with the last ever Pep season and believes it will "bruise a few egos" in the fund management industry.
The research shows that active managers in the top quartile in one five-year period will generally lose this position in the next five years.
Any top performing fund in one five-year period has little more than a random chance of remaining in the top quartile in the subsequent five years.
It also says that the poorest performing funds in one five-year period have by far the best record of moving into the top quartile subsequently.