Columbia Threadneedle has dismissed the growing threat posed to active managers from cheaper index-tracking funds, claiming heightened market volatility widely expected throughout the rest of this year will allow stock-pickers to prove their worth.

Mark Burgess, chief investment officer for Europe, the Middle East and Africa at the $485bn fund house, said: “The volatility we have seen more recently is good for the active management industry and they should be able to take advantage of erratic markets and mispricing.