China Active/Passive Barometer Report: Year-End 2024
Comparatively, active funds greatly struggled to outperform their passive peers.
In China, most passive fund strategies are composed of equities, making active and passive fund investments more closely tied to the performance of the China stock market. Over the past year, Chinese stocks experienced turbulence across certain industries, despite their notable rebound. This has made it even more difficult for active fund managers seeking excess returns, with the percentage of active funds outperforming the asset-weighted average return of their passive peers dropping dramatically to 13.4%, which is a drop of 52 percentage points from a year earlier.
With this drop, it’s important for investors to assess whether active portfolio management or passive portfolio management is right for them, especially as the China Securities Regulatory Commision enacts reforms across the China fund market. Morningstar’s latest edition of the China Active/Passive Barometer report examines the performance of nearly 4,480 unique mutual funds across categories and stock sectors, including success rates, annualized excess returns, and more.
Download the report to understand how the latest active and passive fund trends can impact your investing strategy.
