Less than a fifth of European active equity funds beat passive peers over a decade

Morningstar Active/Passive Barometer

Cristian Angeloni
clock • 3 min read

Just 17% of European active equity funds have managed to beat their average passive peer over the last decade, research by Morningstar has found.

The company's European Active/Passive Barometer found active managers tend to perform better in the small- and mid-cap equity categories, but lag behind passive peers on large-cap stocks. Global ESG and sustainable funds post first net quarterly outflow on record Yet, active funds are more likely to succeed in equity categories, the Barometer discovered, as average passive counterparts tend to have a "structural bias toward a particular economic sector", or are concentrated on a few individual names. At the same time, the performance proportion for active equity funds nearly double...

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