Active equity managers found it harder to outperform passive peers in the first half of 2026 as AI-driven market gains became increasingly concentrated, according to Morningstar’s latest European Active/Passive Barometer. The research found the one-year success rate for active equity managers fell to 28.4%, down from 30.5% at the end of 2025. Morningstar said strong earnings growth and continued investment in artificial intelligence helped propel global equity markets higher, making it more difficult for active managers to keep pace with the technology-led rally. The one-year success rate for active managers in the UK large-cap equity category fell to 15.6%, down sharply from 47% a year earlier. Morningstar said government bond sectors, particularly sterling government bonds, continued to offer opportunities for active managers amid fiscal and political uncertainty.