Latest data from the S&P Indices Versus Active Funds (Spiva) scorecard show that a significant share of Europe and UK equity funds underperformed their benchmarks over the past year, while many continue to underperform over the longer term.
First published in 2002 to measure US actively managed mutual funds, the scorecard has been extended to other regions globally. The Europe Scorecard measures equity funds denominated in euro, sterling and other local currencies against the performance of their respective S&P DJI benchmark indices over one, three, five and 10-year periods. In 2015, the European markets covered was extended to domestic funds from Denmark, Italy, the Netherlands, Poland, Spain Sweden and Switzerland.
As noted in the data, up to 93% of actively managed funds may be underperforming their relevant benchmark – in this instance in the area of emerging market equities.
|Report 1: Percentage of European Equity Funds Outperformed by Benchmarks|
|FUND CATEGORY||COMPARISON INDEX||ONE-YEAR||THREE-YEAR||FIVE-YEAR||TEN-YEAR|
|DATA IN EUROS (EUR)|
|Europe Equity||S&P Europe 350||80.41||73.64||74.17||88.25|
|Eurozone Equity||S&P Eurozone BMI||79.96||84.46||87.84||90.41|
|Nordic Equity||S&P Nordic BMI||39.13||46.51||52.78||75.76|
|Global Equity||S&P Global 1200||88.52||90.47||97.95||98.45|
|Emerging Markets Equity||S&P/IFCI||93.62||86.94||98.17||100|
|U.S. Equity||S&P 500||77.2||97.08||97.86||97.91|
|France Equity||S&P France BMI||66.97||66.67||77.87||84.12|
|Germany Equity||S&P Germany BMI||87.91||78.02||79.55||82.3|
|Italy Equity||S&P Italy BMI||60.78||64||57.89||76.09|
|Spain Equity||S&P Spain BMI||65.52||67.11||70.33||81.97|
|Netherlands Equity||S&P Netherlands BMI||62.5||81.82||93.75||97.06|
Other data contained in the latest Spiva Scorecard report for Europe include ‘survivorship bias’ and asset weighted performance over discrete periods.
Click here to read the full report: Spiva_Europe_Scorecard