Active allocation fails to outperform in more than 85% of multi-asset funds

Fundhouse research

Active asset allocation in multi-asset funds has failed to outperform benchmarks in the vast majority of cases over the last decade, research by Fundhouse has revealed.

According to the firm, in a study of 160 muti-asset strategies within the IA Mixed Investments 40-85% Shares sector, less than 15% managed to outperform a standard global equity index over the ten years to March 2024. The results were slightly more positive when considering a benchmark with a UK bias, where almost 20% provided greater returns than the index. As a result, Fundhouse argued that in over 80% of cases "it would have been better to have done nothing, rather than something", when referring to active allocation. How is potential central bank monetary policy divergence affe...