Number of active portfolios in decline as costs weigh on managed portfolio sector

Morningstar research

Active portfolios are now in the minority in the UK managed portfolios sector, according to Morningstar’s latest research.

The number of passive and blended managed portfolios in the sector has been on the rise since Morningstar published its inaugural research on the UK managed portfolio landscape in 2022. Since then, the proportion of portfolios labelled ‘active' has declined from 61% to 48%. Morningstar director of manager research departs after 14 years Analysis of funds on a look-through basis has shown the number of wholly active portfolios is lower still, Morningstar found, while fewer than 15% of managed portfolios in Morningstar's database shun index funds entirely. Passive funds continue t...