The managers running the biggest active funds picked stocks that beat the market in 2025 — and most still lagged their benchmark. A Morningstar do-nothing experiment and a body of academic research explain why active funds underperform even when the picking is good: skilled buying undone by poor selling, the hidden cost of trading, and the incentives that keep managers churning. The UK evidence points the same way.
Jonathan Clements, who died this week, was one of the most influential personal finance journalists of his generation. Through his columns, books, HumbleDollar, and his final act of generosity — the Getting Going on Savings Initiative — he leaves investors a lasting legacy of wisdom and generosity.
Robin Powell
Sep 24, 20255 min read
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