Let the underwhelming begin.
According to the latest S&P INDICES VERSUS ACTIVE FUNDS (SPIVA) SCORECARD
year 2012 "marked the return of the double digit gains
across all the domestic and global equity benchmark indices. "
However, according to the scorecard, the gains passive indices made did not translate into
active managementreturns, as most active managers in all categories,
except large-cap growth and real estate funds, underperformed
their respective benchmarks in 2012.
Performance lagged behind the benchmark indices for 63.25 percent of large-cap funds,
80.45 percent of mid-cap funds and 66.5 percent of small cap funds.
The performance figures are equally unfavorable for active funds
when viewed over three- and five- year horizons. Managers
across all domestic equity categories lagged behind the
benchmarks over the three-year horizon. The five-year horizon
yielded similar results, with large-cap value emerging as the only
category that maintained performance parity relative to its
Among international equity categories, 66.26 percent of global funds,
56.27 percent of international funds and 57.62 percent of emerging markets
funds were outperformed by benchmarks over the past three
Yet a large percentage of international small-cap funds, on
the other hand, continue to outperform the benchmark
regardless of the period being measured, indicating that active
management opportunities are still present in this space.
Also, actively managed fixed income funds fared better than their
equity counterparts in 2012. Most fixed income funds
outperformed their benchmark indices except for funds in the
longer term government, longer term investment-grade and
The turmoil of the past five years saw nearly 27 percent of domestic
equity funds, 23 percent of international equity funds and 18 percent of fixed
income funds merge or liquidate.
Stay ahead of the news ... Sign up for our email alerts now