BMO GAM's Burdett takes passives exposure to 'lowest level' as research shows majority of active funds outperforming

BMO GAM's PassiveWatch research

The average active fund has outperformed the average passive fund in three out of five Lipper Global sectors over the past 20 years, research by BMO Global Asset Management's multi-manager team shows.

According to BMO GAM's latest PassiveWatch research, which reviewed the 20-year performance of all active and passive funds with available Lipper data across the UK, Europe, Asia, US and Japan, the average active fund outperformed the average passive fund in the UK, Europe and Japan.  Although in the US sector this was not the case, the best-performing active fund still outperformed the average passive fund by a multiple of 6.3x. This is reflected in the differential between the best- and worst-performing passive funds over one year. During 2018, the performance of the best and worst ...