Improving markets are weakening investors' resolve to hang on to the substantial levels of cash they have been hoarding and active managers stand to benefit on the back of strong performance this year.

The situation marks an about-turn, after the performance of many active strategies fell along with equities last year. Active strategies aim to pick stocks that will outperform the wider market, and investors are charged higher fees than for passive strategies, which track a pre-specified basket of stocks, usually a prominent index.