Active fund performances during COVID 19

18 December 2020

๐Ÿค” How should we consider the fact that ๐Ÿ“๐Ÿ’% 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: ๐Ÿ“๐Ÿ•% ๐จ๐Ÿ ๐ž๐ช๐ฎ๐ข๐ญ๐ฒ ๐š๐œ๐ญ๐ข๐ฏ๐ž ๐ฆ๐š๐ง๐š๐ ๐ž๐ซ๐ฌ ๐จ๐ฎ๐ญ๐ฉ๐ž๐ซ๐Ÿ๐จ๐ซ๐ฆ๐ž๐ 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?

๐Ÿ‘‰Acknowledging the positive results of active managers in some specific periods does not mean that we are in favor of active managers. ๐ŸŽฏIt just demonstrates that the ๐œ๐จ๐ฆ๐›๐ข๐ง๐š๐ญ๐ข๐จ๐ง ๐›๐ž๐ญ๐ฐ๐ž๐ž๐ง ๐š๐œ๐ญ๐ข๐ฏ๐ž ๐š๐ง๐ ๐ฉ๐š๐ฌ๐ฌ๐ข๐ฏ๐ž ๐Ÿ๐ฎ๐ง๐๐ฌ bring ๐ฏ๐š๐ฅ๐ฎ๐ž to investors’ ๐ฉ๐จ๐ซ๐ญ๐Ÿ๐จ๐ฅ๐ข๐จ๐ฌ.

And additionally, it shows that the ๐š๐ฅ๐ฅ๐จ๐œ๐š๐ญ๐ข๐จ๐ง ๐๐ž๐œ๐ข๐ฌ๐ข๐จ๐ง ๐›๐ž๐ญ๐ฐ๐ž๐ž๐ง ๐š๐œ๐ญ๐ข๐ฏ๐ž ๐š๐ง๐ ๐ฉ๐š๐ฌ๐ฌ๐ข๐ฏ๐ž funds should not be ๐›๐š๐ฌ๐ž๐ on accepted ideas but on ๐ฎ๐ฉ๐๐š๐ญ๐ž๐ ๐๐š๐ญ๐š. ๐Ÿš€

Marlene Hassine Konqui