Part of a global range keeping score on the active versus passive debate, the SPIVA Europe Scorecard measures the performance of actively managed funds domiciled in Europe, with semiannually updated statistics including outperformance rates relative to appropriate category benchmarks, survivorship rates and fund performance dispersion over a range of time horizons.
Mid-Year 2025 Highlights
Navigating tariff turmoil, shifting geopolitics and the fluctuating fortunes of U.S. mega caps, in the first half of 2025, the absolute and relative performance of actively managed funds domiciled in Europe varied significantly according to the market segment they invested in. Nonetheless, the average underperformance rates across equity and fixed income categories remained typical; 61% of all the equity funds and 59% of the fixed income funds included in our sample underperformed their respective category benchmarks over the six months ending June 2025.
- In the largest active category by both the number of funds and collective assets under management, namely euro-denominated Global Equity funds, a slim majority equal to 56% of funds lagged the S&P World Index’s total return of -2.9% in H1 2025. Smaller funds in this category did better on average; the asset-weighted active fund return was a full percentage point lower than the benchmark’s return, while the equal-weighted average fund return was above the benchmark (see Report 1a, Report 3a and Report 3b).
- In the closely watched U.S. Equity category, the S&P 500® added further evidence to its long-established reputation as being particularly “hard to beat.” Over two-thirds, 67%, of euro-denominated actively managed U.S. Equity funds, and 72% of pound sterling-denominated actively managed U.S. Equity funds underperformed the S&P 500 in H1.
- In both Global Equity and U.S. Equity categories, active fund underperformance rates increased sharply over all time horizons longer than six months, rising to 98%, 97%, 97% and 94% over 10 years for the EUR-based Global Equity, GBP-based Global Equity, EUR-based U.S. Equity and GBP-based U.S. Equity categories, respectively.
- There were some bright spots for equity managers, with just 36% and 32% of EUR-denominated Emerging Equity and France Equity active funds underperforming, respectively, and a perfect 0% of Denmark Equity funds underperformed. At the other end of the spectrum, 97% of actively managed K. Small-Cap Equity funds underperformed in H1.
- Our latest figures offer mixed evidence in support of the general perception that active management has a better chance of outperforming in fixed income than in equities. Overall, underperformance rates were lower in bonds than in equities across all reported time horizons, but majority underperformance remained the norm (see Exhibit 1).
- In the largest fixed income category, namely euro-denominated corporate bonds, 63% of active funds underperformed the iBoxx EUR Corporates Index. Elsewhere, underperformance rates ranged from just 38% for GBP Government Bond funds, to 88% for U.S. High Yield funds.
- In terms of survivorship, 4% of all equity funds and 1.8% of fixed income funds included in our sample were merged or liquidated during the first six months of 2025. These survivorship rates were consistent, if a little better than their historical long-term averages: over 10 years, a similar attrition rate would result in survival rates of 62% and 69%, respectively, versus the observed 10-year survival rates of 58% and 54% for all equity and all fixed income funds, respectively (see Report 2 and Report 7).
