In Europe, the overall rate of success of active equity managers remains stubbornly low over longer periods. In fact, the 10-year rate came in at 13.5% in June, one of the lowest levels of the past decade, down from 14.9% at the close of 2024 and 16.3% in June 2024.
This, however, doesn´t mean that all categories show the same pattern. Generally, active managers tend to achieve higher success rates the lower they go into the market-cap spectrum, or in categories where the passive composite suffers from structural concentration in specific sectors or where indexes are very top-heavy in a small number of stocks.
A few other active fund categories in the US fell behind their passive counterparts in the last year:
- Real estate funds
- Large-cap funds
- Mid-cap funds
- Small-cap funds
In Europe, active fund categories that fell behind their passive counterparts include:
- Global large-cap blend equity funds
- UK equity income funds