18 June 2019 - Active managers return to outperforming passive in 2019

FE Trustnet finds that there has been a fall in the proportion of index-tracking funds making top-quartile returns this year.

The number of passive funds outperforming their active rivals has dropped in 2019, following the tough conditions of last year that helped them to outpace stock pickers, research by FE Trustnet suggests.

Last year was a difficult one for market as issues such as the Federal Reserve’s tightening programme, the US-China trade war, Brexit and spluttering economic growth prompted market sell-offs.

As such, many active managers were wrong-footed and failed to beat the market. This means that index trackers rose up the sector rankings and beat many of their active peers.

Performance of UK sector vs index in 2018

Performance of UK sector vs index in 2018

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