🤔 How should we consider the fact that 𝟓𝟒% of equity active managers outperformed their passive counterparts in H1 2020 ?
Based on the results of 13 equity categories, Morningstar calculates this average result for active manager outperformances in H1 2020. Taking into account the 49 equity categories analyzed in Morningstar’s latest European report, the result is even more striking: 𝟓𝟕% 𝐨𝐟 𝐞𝐪𝐮𝐢𝐭𝐲 𝐚𝐜𝐭𝐢𝐯𝐞 𝐦𝐚𝐧𝐚𝐠𝐞𝐫𝐬 𝐨𝐮𝐭𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐞𝐝 in H1 2020. Isn’t that significantly much more than the figures we all have in mind, far below 50%? And isn’t that significant enough to get articles with a positive tone for active manager performances in H1 2020?
👉Acknowledging the positive results of active managers in some specific periods does not mean that we are in favor of active managers. 🎯It just demonstrates that the 𝐜𝐨𝐦𝐛𝐢𝐧𝐚𝐭𝐢𝐨𝐧 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐚𝐜𝐭𝐢𝐯𝐞 𝐚𝐧𝐝 𝐩𝐚𝐬𝐬𝐢𝐯𝐞 𝐟𝐮𝐧𝐝𝐬 bring 𝐯𝐚𝐥𝐮𝐞 to investors’ 𝐩𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨𝐬.
And additionally, it shows that the 𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐚𝐜𝐭𝐢𝐯𝐞 𝐚𝐧𝐝 𝐩𝐚𝐬𝐬𝐢𝐯𝐞 funds should not be 𝐛𝐚𝐬𝐞𝐝 on accepted ideas but on 𝐮𝐩𝐝𝐚𝐭𝐞𝐝 𝐝𝐚𝐭𝐚. 🚀
Marlene Hassine Konqui