- Passive funds have been eating active managers’ lunch in recent years, with only one third of active funds outperforming a passive alternative over 10 years according to AJ Bell’s latest Manager versus Machine report
- This underperformance has been met with significant outflows – retail investors withdrew over £100 billion from active funds in the three years to December 2024
- But there are some active funds and their managers/strategies currently bucking that trend
- AJ Bell looks at three actively managed funds that fall into this category
Paul Angell, head of investment research at AJ Bell, comments:
“Whilst the broader mood music for flows into active funds continues to disappoint, there are some strategies bucking the trend. Here we profile three active funds that have added over £1 billion in assets under management (AUM) in the 12 months to the end of February 2025. Unsurprisingly, each fund has delivered strong relative returns in recent years and they are all managed by highly credible portfolio managers.”
- JPM Global Focus Growth
“This Lux SICAV has added over £2 billion over the year, with the strategy’s popularity leading to JPM launching a UK OEIC of the same name in May 2024. The team also manage the JPM Global Growth & Income investment trust that has continued to grow in recent years, both through acquisitions and new issuances. The team, headed by Helge Skibeli, have been managing the fund since 2019 and look for companies with superior quality characteristics that are not overpriced.
“The fund’s performance has impressed over time, benefiting from a deep bank of 80 analysts, as well as dedicated PMs who structure the portfolio with a market aware approach, ensuring that stock selection, rather than factor exposure, is the key driver of returns.”
- Artemis UK Select
“This fund has been the envy of the UK All Companies sector over the year, taking in around £1.2 billion. The fund’s co-managers Ed Legget and Ambrose Faulks have been at the helm since the end of 2015 and take a value approach to investing in UK equities.
“The managers have combined to great effect of late, more than doubling the returns of the FTSE All Share index in both 2023 and 2024. That said, the fund did fall by more than the market in 2022.”
- Man Dynamic Income
“This June 2022-launched strategic bond fund has also added over £1 billion over the year, which is particularly impressive given the modest starting point of just £230 million 12 months ago. In this fund Jonathan Golan, lead manager on the equally popular Man Sterling Corporate Bond fund, extends his investment philosophy of focusing on smaller issuers and undervalued credits in the high yield universe, with an ability to invest up to 100% in either investment grade or high yield bonds at any one point in time.
“The fund has delivered stellar performance versus its IA Strategic Bond sector since launch, more than tripling the returns of the sector in each of the last two calendar years. Whilst the stock selection since launch has clearly been an important factor, the fund has also benefited from a market where duration has underwhelmed – a risk that the fund is typically underweight of.”