European investors bet on active funds amid market volatility and divergence
9 OCT, 2025
European investors have shown a clear return to active management strategies, according to the second edition of the Portfolio Panorama report by Janus Henderson. Between March and August 2025, exposure to actively managed funds increased by an average of 7% in 205 European portfolios analyzed, reflecting a move away from passive strategies in search of greater flexibility and risk control.
Fixed income led the change: allocations to actively managed funds grew by 8% in an environment marked by interest rate volatility. This movement reflects the demand for more adaptable income strategies and shorter duration, with a focus on risk management against sharp market movements. Together, fixed income funds represented 31.9% of European portfolios in August 2025.
Equity and regional bias: preference for the US and large caps
In equities, investors maintained their preference for the United States and large-cap companies. The report shows that exposure to US equities rose five percentage points to 50%, while European and British equities accounted for 35% of total equity allocations, showing a marked regional bias against the MSCI ACWI, where these regions represent only 15%. Large caps dominated the equity portfolio with 72%, while mid-caps reached 20%.
Sector rotation was another highlighted data. Industrial values gained prominence, increasing from 10% to 15% of equity allocations, while the technology and financial sectors slightly contracted, to 24% and 15%, respectively, reflecting an investor appetite for assets perceived as more resilient in the face of global uncertainty.
Matthew Bullock, director of Portfolio Construction and Strategy for EMEA and APAC at Janus Henderson, emphasizes that “investors have shown resilience in the face of geopolitical uncertainty and a significant degree of optimism. The increase in active management suggests that we are entering a period where there will be more winners and losers, favoring actively managed strategies”.
