AJ Bell: Active equity funds gain ground on trackers in first half of 2023

Active funds outperforming passives

The performance of active equity funds has seen an uptick relative to trackers in the first half of the year after a bleak 2022, according to AJ Bell’s Manager versus Machine report.

Active equity fund managers saw a substantial improvement in performance in the first six months of this year, with 44% outperforming a passive alternative, up from 27% in 2022.  However, the active versus passive battle continues to be overwhelmingly won by tracker funds over the long-term. The report found that over the last ten years, only 38% of active managers have beaten a passive comparator.  Moreover, the popular global sector continues to disappoint, with only a third of global active funds managing to beat a passive competitor in the first half of 2023. Over a ten-year perio...