Why are so many active fund managers underperforming?

US tech stocks have dominated market performance for a long time

clock • 5 min read

Laith Khalaf looks at the latest results from AJ Bell's Manager versus Machine report which found just 33% of active equity funds outperformed the typical index tracker in their sector...

Every six months at AJ Bell, we publish a report on the proportion of active managers beating the typical passive fund in seven key equity sectors. It's called Manager versus Machine, and ever since we launched the report in 2021, it has made challenging reading for active managers. In the latest edition, our analysis showed that overall, just 33% of active equity funds outperformed the typical index tracker in their sector (see table below). That doesn't sound like a good result, and it isn't. But it's probably better than you think. All active managers aim to outperform, and all inv...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why the bull market in precious metals may be starting again

Why the bull market in precious metals may be starting again

Silver and gold again – who would have thought it?

Paul Wood
clock 20 May 2026 • 2 min read
Omnis Investments launches passive range for Openwork and 2plan advisers

Omnis Investments launches passive range for Openwork and 2plan advisers

L&G to run day-to-day investment management

Patrick Brusnahan
clock 19 May 2026 • 2 min read
Digital bank Zopa gains targeted support authorisation

Digital bank Zopa gains targeted support authorisation

Receives regulatory approval for investment products

Sophia Panayi
clock 19 May 2026 • 1 min read