❓ ❓ Do you really know how 2020 compares to previous years when looking at the % of European active managers outperforming in 2020?

7 April 2021

50% of European active managers outperformed in Morningstar active-passive barometer (year-end 2020). 54% of European equity active funds outperformed for SPIVA (average calculated from SPIVA scorecard 2020). Looking at the title of the articles that were published on the topic, it seems like a poor year: among them “Active funds fail the test in 2020”, “Stock pickers trailed market again in roller coaster 2020″…

👀 Yet a closer look at my own proprietary database shows that 2020 percentage of active managers outperforming their passive counterparts is close to the 10Y yearly record high of 2015. And additionally, in 2020, active managers’ outperformance average spread also reached a 10-year yearly record high.

💡 Despite what has been said, 2020 performances have in fact been better for active funds. Nevertheless, they show a mixed picture between active and passive funds. This again demonstrates that an optimal portfolio should be based on a combination of active and passive funds. Both management styles have a role to play in efficient portfolios.

Marlene Hassine Konqui