S&P: 60% of Canadian Active Fund Managers Underperform the S&P/TSX
Composite During 1st Quarter
Index Provider Releases Latest SPIVA Scorecard for Canada
TORONTO, June 9 /CNW/ - Standard & Poor's, the world's leading index
provider, announced today that the latest results of its Standard &
Poor's Index Versus Active Fund Scorecard for Canada ("SPIVA") show that
only 40% of active mutual funds in the Canadian Equity category were
able to outperform the S&P/TSX Composite Index during the first quarter
of 2010. Similar results were seen in the Canadian Small/Mid Cap Equity
category of mutual funds when compared against the performance of the
S&P/TSX Completion Index.
SPIVA Canada reports on the performance of actively managed Canadian
mutual funds versus their relative Standard & Poor's benchmark. A key
advantage of the SPIVA report is its correction for survivorship bias,
which can skew results as funds merge or liquidate.
In the first quarter of 2010, actively managed funds in the Canadian
Equity category underperformed the S&P/TSX Composite Index when
examining both equal- and asset-weighted returns. However, active funds
fared better across some of the other fund categories. On both an equal-
and asset-weighted basis, active funds outperformed their benchmarks in
the categories of U.S. Equity and Canadian Focused Equity. For the
Canadian Focused Equity category 58% of active funds outpaced the
blended index (comprised of 50% S&P/TSX Composite + 25% S&P 500 + 25%
S&P EPAC BMI LargeMidCap).
Over longer periods of time, Standard & Poor's continues to observe
indices outperforming the majority of domestic funds. In the three- and
five-year periods ending Q1 2010, only 10.9% and 3.3% of actively
managed Canadian Equity funds have outperformed the S&P/TSX Composite
Index.
Looking at the performance of actively managed foreign equity funds,
over the last five years, only 9.8% of active funds in the International
Equity category, 11.3% in the Global Equity category and 9.7% in the
U.S. Equity category have outpaced the S&P EPAC BMI LargeMidCap, S&P
Developed BMI LargeMidCap and S&P 500 indices respectively.
All SPIVA reports can be accessed in their entirety by going to:
www.spiva.standardandpoors.com
About S&P Indices
S&P Indices, the world's leading index provider, maintains a wide
variety of investable and benchmark indices to meet an array of investor
needs. Over $1 trillion is directly indexed to Standard & Poor's family
of indices, which includes the S&P 500, the world's most followed stock
market index, the S&P Global 1200, a composite index comprised of seven
regional and country headline indices, the S&P Global BMI, an index with
approximately 11,000 constituents, and the S&P GSCI, the industry's most
closely watched commodities index. For more information, please visit
www.standardandpoors.com/indices <http://www.standardandpoors.com/indices>.