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Active fund managers fail to beat passives even in a bear market

Around half of active stock funds and one third of active fixed-income funds outpaced their passive peer during the first six months of 2020

Active fund managers fail to beat passives even in a bear market
Photo: Getty Images

Active managers have long claimed that they needed volatility to beat the market. Yet many of them still failed to outperform the average passive fund during the “once-in-a-decade” volatility at the beginning of the Covid-19 pandemic.

According to research from Morningstar, only about half of active stock funds and one third of active fixed-income funds bested their average passive peer during the first six months of 2020.

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