Active fund managers have delivered standout performance in 2025, with nearly 50 UK equity funds outperforming the FTSE All-Share year-to-date, according to new analysis from AJ Bell.
Dan Coatsworth, head of markets at AJ Bell, said: “In the battle of the manager versus the machine, humans have been punching above their weight with UK funds so far this year. In both the UK All Companies and UK Equity Income categories, the top 10 performers were dominated by actively managed funds.”
The FTSE All-Share has returned 16.6% so far this year, but 47 funds in the UK All Companies sector have outpaced that figure.
Leading the way, the SVS Zeus Dynamic Opportunities fund has returned 28.4% year-to-date, while Artemis SmartGARP UK Equity delivered 27.7%.
On the income side, Barclays UK Equity Income topped the table with a 20.6% return, narrowly ahead of the iShares UK Dividend ETF, which gained 20.4%. Seven of the top 10 equity income performers were actively managed funds.
Coatsworth noted the strong environment for UK equities, with the FTSE 100 reaching new highs and 10 stocks posting returns above 50% this year, including Fresnillo and Babcock.
“One might argue that anyone investing in UK equity funds, either passive or active, should be happy with performance over the past nine months whether their choices have beaten the market or not,” he said.
The results mark a boost for active managers, who have faced mounting criticism in recent years for widespread underperformance against cheaper passive rivals.
Coatsworth cautioned, however, that the real challenge will be sustaining outperformance: “It’s incredibly hard for fund managers to beat their benchmark year in, year out. The challenge now for active funds is to sustain this year’s outperformance to date. That’s easier said than done.”
Not all funds have shared in the success. Lindsell Train UK Equity has lost 2.7% year-to-date, despite the buoyant market. Manager Nick Train has cited weak performance from large consumer brand holdings, including Diageo.
Coatsworth warned the negative result could test investor patience: “To suffer a negative return in such a strong year for UK shares could be the breaking point for many of them.”