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In Defense of Active Management

Published: March 31, 2026

Investment Insights +    25 minutes

We discuss how active management has struggled to outperform cap-weighted indices in recent years, with only about 29-44% of managers beating the MSCI World Index from 2023 to 2025. This trend is linked to the increasing concentration of the index in a few large stocks that have delivered exceptional returns. Understanding when active managers outperform helps inform investment decisions amid evolving market conditions.