Figure 1
Two line graphs depict time series data for fund activeness and stock-selection opportunity measures across the UK, France, and Germany from 2013 to 2024. Panel A shows the time series of average active share. The y-axis represents the active share (A C) ranging from 0.00 to 0.60, and the x-axis represents the years from 2013 to 2024. The data for the UK is represented by a blue line, France by a red line, and Germany by a green line. The lines show fluctuations in the average active share over the years, with no clear long-term trend but noticeable peaks and troughs. Panel B shows the time series of stock-selection opportunity, defined as the average positive FF6 alpha. The y-axis represents the stock-selection opportunity (S S O) ranging from 0.00 percent to 0.15 percent, and the x-axis represents the years from 2013 to 2024. The data for the UK is represented by a blue line, France by a red line, and Germany by a green line.Time series of fund activeness and stock-selection opportunity measures. Note: The time series of the stock-selection opportunity (SSO) and fund activeness (AC) measurements are shown in the above figure. Panel A displays the fund active share time series, whereas Panel B displays the time series of the stock-selection opportunity measure, defined as the average positive FF6 alpha. The sample period spans from January 1, 2012, to December 31, 2024