Summary
- UK Funds Match Benchmark in Q2: Active UK funds achieved an average Q2 return of +3.62%, in line with the benchmark and with just over half of funds outperforming the index.
- Performance Correlated to Style: Performance was strongly influenced by style, with Value funds leading with an average Q2 return of 4.48%, while Aggressive Growth funds lagged at 1.82%.
- Banks and Pharma Key to Performance: Both sectors were a key driver of absolute returns, but sizeable underweights were costly to active UK funds.
- Big Stock Underweights Hurt Active Investors: The largest 3 stock underweights of AstraZeneca, HSBC, and Shell all performed well, losing UK funds a combined 80bps versus the FTSE All Share index, on average.
- Active vs Passive: Active UK funds trail SPDRs FTSE All Share ETF by 5.6% over 10 years, though individual strategies have returned significantly more.
For more analysis, data or information on active investor positioning in your market, please get in touch with me on steven.holden@copleyfundresearch.com
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