Despite being sold as a means of generating superior returns than the broader market, active funds continue to underperform compared to their passive counterparts.
AJ Bell’s latest Manager versus Machine report shows that just 30% of active funds outperformed passive counterparts during the 10 years to 30 June 2025. That marks a record low since AJ Bell started measuring the data.
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In which sectors did active funds outperform passives?
|
IA Sector |
H1 2025 |
5 year |
10 year |
|---|---|---|---|
|
Asia Pacific ex Japan |
11% |
19% |
31% |
|
Europe ex UK |
31% |
38% |
39% |
|
Global |
51% |
16% |
17% |
|
Global Emerging Markets |
41% |
46% |
56% |
|
Japan |
68% |
38% |
50% |
|
North America |
44% |
20% |
15% |
|
UK |
29% |
27% |
31% |
|
TOTAL |
42% |
26% |
30% |
