Less than 40% of active equity managers beat average passive alternative in 2023

Although only 36% of managers beat their average passive alternatives, this was an improvement when compared to 2022, when only 27% of active equity funds managed the achievement, AJ Bell’s latest Manager versus Machine report has found.
Investors are demonstrating their disquiet with redemptions – a total of £9bn has been withdrawn from active open-ended funds by retail investors over the last five years. 
During the same time period, a net £75bn has flowed into passive strategies, based on AJ Bell analysis of Investment Association data. 
AJ Bell: Active equity funds gain ground …