Actively managed mutual funds in the Canadian and U.S. equity categories lagged their benchmarks in the first quarter of 2006, Standard & Poor’s said today.

According to the Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA) for Canada, the S&P/TSX composite index outperformed 69.8% of actively managed Canadian equity funds through March, while the S&P 500 index (measured in Canadian dollars) outperformed 61.4% of U.S. equity funds. However, actively managed Canadian small-cap funds have fared better, with 63.3% beating the S&P/TSX small cap index in the past quarter.

Longer-term results continue to be consistent with past results. Over the last three years, 10.5% of actively managed Canadian equity funds have outperformed the S&P/TSX composite, 65% of actively managed Canadian small-cap funds have outperformed the S&P/TSX small cap index, and 31.1% of U.S. equity funds have outperformed the S&P 500.

Five-year average fund returns show active funds underperforming the S&P/TSX composite and S&P/TSX capped composite, both on an equal- and asset-weighted basis. Canadian small cap equity funds fared better over this same timeframe, outperforming the S&P/TSX small cap index.