81% of actively managed Italian equity funds underperformed their Benchmark. This is what we read in the half-year results of the S&P Indices Versus Active Funds (SPIVA®) Europe Scorecard – Mid-Year 2019.
In detail, the weighted average return on assets of funds that invested in Italian shares remained 3,33% lower than the S&P Italy BMI over one year, but 0,28% higher if annualized over ten years. "The weighted average yield for assets - specifies the study - indicates the performance of an average investor and mitigates the influence of smaller funds".
Similar trend for European active funds, 90 per cent of which underperformed their benchmark between mid-2018 and mid-2019, with a group asset-weighted return negative and the S&P Europe 350® benchmark up 5,3%.
Andrew Innes, EMEA Head Global Research and Design, commented: “The sharp declines in equity markets at the end of 2018 were accompanied by the general underperformance of many European active funds, challenging the commonly held belief that active managers tend to have an advantage in volatile markets. . While markets improved in the first half of 2019, active managers overall were unable to catch up."
Going outside Europe, 84% of US equity funds actively managed funds denominated in euro underperformed the S&P 500 over a year. This share rises to 92% and 98% over a five-year and ten-year horizon. This performance was also matched by global equity funds: the percentage of euro-denominated funds that underperformed the S&P Global 1200 is 87%. By extending the analysis time horizon, it rises to 94% over five years and even 99% over 10 years.
Finally, 58% of emerging market equity funds Euro-denominated actively managed funds underperformed the S&P/IFCI over a year, rising to 91% and 95% five-year and XNUMX-year horizons, respectively.
