Proportion of UK active managers outperforming in 2022 was lower than usual

Passives continue to gain market share

The proportion of UK active managers that outperformed last year was lower than usual, while its passive peers continued to gain market share, a study by Hargreaves Lansdown has found.

 Historically, UK equity managers have shown better ability to outperform passive equivalents than managers in most other regions, but this was not true in 2022.  Only 13.8% of UK funds outperformed the FTSE All Share and Vanguard FTSE UK All Share indices, compared to 37.7% in 2021 and 39.2% in the last ten years. According to Hal Cook, senior investment analyst at HL, this should not come as a surprise, given that one year is too short of a time period to give active managers scope to outperform.  The oil and gas sector's notable performance benefited the FTSE All Share, and in t...