Active funds outperformed passives in H2 2020 - Bowmore

Greater exposure to value helped

David Brenchley
Active funds performed better than their passive peers, Bowmore found

Active funds performed better than their passive peers, Bowmore found

A bounce in value stocks after positive Covid-19 vaccine news in November helped active funds outperform their passive peers in the second half of 2020, research has found.

Actively managed UK large-cap equity funds saw an average gain of 8.3% in the final six months of last year, compared to 5.1% from UK large-cap passive equity offerings and 6.2% from the FTSE 100, according to a study from Bowmore Wealth Group. Bowmore said it was likely active managers' greater exposure to value stocks helped them to outperform from July through December, as the style of investing bounced back on positive readings from a number of Covid-19 vaccines, as well as an oil price recovery. Active funds attract second highest inflows on record in December After a strong f...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Funds

The ETFs aim to overcome traditional yield shortfall by using multi-factor investing.

Invesco launches two ESG credit ETFs

Invesco has launched two new ESG ETFs that provide investors with access to investment grade fixed-rate euro-denominated unsecured corporate bonds from global issuers.

clock 29 June 2022 • 2 min read
The ETF will be available to investors on London Stock Exchange for a total expense ratio of 0.35%.

Franklin Templeton launches Catholic EM sovereign debt ETF

Article 8 ETF for European investors

clock 28 June 2022 • 1 min read
Alex Wright of Fidelity International

Fidelity's Alex Wright: People have misunderstood OMV Russia exposure

'Sentiment is overly pessimistic'

clock 23 June 2022 • 3 min read