In this paper, we will present the results of our research into truly active management. Our results show that over the last five market cycles, more than 60 % of high active share US fund assets outperformed their benchmarks, after fees, for a variety of measures - excess returns, dowside capture and risk-adjusted returns.
Questions routinely arise about the value of active investing : Can active managers beat their benchmarks ? Should investors abandon active strtegies ? Invesco conducted an extensive study of 2918 equity mutual funds in the US over the past 20 years - covering five dustrict market cycles - to investigate the true value of active management. Our study focused on active share, which measures the difference between a fund's holdings and the holdings of its bechmark index.
Source : Invesco Real Estate