This year’s volatile equities markets have resulted in the majority of active equity portfolio managers who invest in domestic equities faring worse than their respective benchmarks, as just 26.4% of Canadian equity funds outperformed the benchmark S&P/TSX composite index during the one-year period ended June 30, according to the S&P Dow Jones Indices SPIVA Canada Scorecard.
The one-year data from the report — which measures the performance of actively-managed mutual funds in Canada net of fees, against their respective benchmarks, for the first half of 2016 — also show unfavorable results for actively managed funds in the Canadian small-and mid-cap equity category, with only 31% of portfolio managers outperforming their benchmark, the S&P/TSX completion index.
Over the same one-year period, only 19.4% of portfolio managers in the Canadian-focused equity category outperformed the benchmark blended index, which allocates 50% of its weight to the S&P/TSX composite index, 25% of its weight to the S&P 500 composite index and 25% of its weight to the S&P EPAC LargeMidCap index.
As well, the majority of active portfolio managers in the international equity category saw their returns lag the benchmark, with 42.5% of international equity managers beating the S&P EPAC LargeMidCap index over the 12-month period ended June 30. Similarly, only 29.8% of global equity portfolio managers had higher returns than the benchmark during the same period.
The report has also found that not a single portfolio manager who invests in U.S. equity was able to deliver higher returns than the benchmark, the S&P 500, over a five-year horizon.
More information on the results of the S&P Dow Jones Indices SPIVA Canada Scorecard are available in this link.
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