Active funds outperformed passives in H2 2020 - Bowmore

Greater exposure to value helped

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...