Manager versus Machine
Active and passive funds compared
Your Manager versus Machine guide for 2026
Our Manager versus Machine report looks at active funds in seven key equity sectors, and compares performance to the average passive fund in the same sectors, rather than a benchmark index. This provides a real world comparison, reflecting the practical investment choice retail investors face between active and passive funds. While benchmark indices are widely used as comparators for active funds, investors can’t buy an index; tracker funds are the nearest they can get.
The latest report finds:
- Overall, 42% of active funds outperformed in the first half of 2026, matching the same period a year earlier
- Global active funds suffered their second worst period since AJ Bell launched this biannual report in 2021, with a mere 22% beating passives
- Only 19% of UK active funds beat the passive machines in the first half of 2026
- Asia Pacific ex Japan active funds had their best period since the Manager versus Machine report’s debut in 2021, with 65% beating passives
- Global Emerging Markets also shone for stock pickers as 63% of active funds beat passive counterparts, a three-year best
Three out of every five products across all the different funds bought and sold on AJ Bell’s DIY investor platform in the first half of 2026 were actively managed – but passive funds dominated the top 100 most popular fund choices by more than two to one
Over 10 years, only 21% of active managers outperformed passive funds – a new record low for this report
Your Manager versus Machine guide for 2026
Our Manager versus Machine report looks at active funds in seven key equity sectors, and compares performance to the average passive fund in the same sectors, rather than a benchmark index. This provides a real world comparison, reflecting the practical investment choice retail investors face between active and passive funds. While benchmark indices are widely used as comparators for active funds, investors can’t buy an index; tracker funds are the nearest they can get.
The latest report finds:
- Overall, 42% of active funds outperformed in the first half of 2026, matching the same period a year earlier
- Global active funds suffered their second worst period since AJ Bell launched this biannual report in 2021, with a mere 22% beating passives
- Only 19% of UK active funds beat the passive machines in the first half of 2026
- Asia Pacific ex Japan active funds had their best period since the Manager versus Machine report’s debut in 2021, with 65% beating passives
- Global Emerging Markets also shone for stock pickers as 63% of active funds beat passive counterparts, a three-year best
Three out of every five products across all the different funds bought and sold on AJ Bell’s DIY investor platform in the first half of 2026 were actively managed – but passive funds dominated the top 100 most popular fund choices by more than two to one
Over 10 years, only 21% of active managers outperformed passive funds – a new record low for this report
Previous Manager versus Machine reports
Remember that the value of investments can change, and you could lose money as well as make it. Past performance is not a reliable indicator of future performance.
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