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Actively managed funds post limp results in S&P’s latest scorecard

News Team, 18/04/2019

Actively managed funds have posted disappointing results across the European investment sector, according to new findings from S&P Indices Versus Active Funds (SPIVA) freshly released bi-annual scorecard, adding further heat to the longstanding passive versus active debate.

In particular, the reports bring grim tidings for managers involved in UK-based active equity funds, with 73 percent underperforming on the S&P’s domestic BMI for the yearly period ending December 2018.

The short-term results corroborate the negative performance of active equity funds over longer durations, with 73.5 percent underperforming in relation to the benchmark over the past decade.

UK equity involving acting funds also achieved an underwhelming average asset-weighted return of 1.05 percent over one year and averaged 0.54 percent year-on-year below the S&P United Kingdom BMI in the last ten years too.

Furthermore, 57 percent of actively managed small-cap stocks in the UK underperformed in the S&P UK Small Cap Index, merely generating average asset-weighted returns of 0.7 percent below the benchmark over a one-year period,

US equity funds performed even worse in the scorecard, with 83 percent of actively managed euro-denominated US Equity Funds underperforming in the S&P 500 over the same period. This rises to a near-total 96 and 98 percent over the five- and ten-year time horizon.

Meanwhile, with Global Equity funds struggled, continuing the theme of active funds not making the desired impact, with 87 percent of actively managed euro-denominated Global Equity funds underperformed the S&P Global 1200 over a one-year period. There was little respite found in the Emerging Markets Funds either, even if they fared slightly better, with 79 percent of actively managed euro-denominated Emerging Markets Equity funds underperforming in the S&P/IFCI.

It wasn’t bad news all around in the world of active funding with several Fundeye listed asset management companies maintaining positive results. Key active funds successfully managed by Echiqueir such as Echqiueir Positive Impact (click here for details) outscored its benchmark this year, as did German fund ATLAS Global Infrastructure, with information on this fund available here.

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