UK active managers fall behind benchmarks during 2015

Canary Wharf3UK active managers saw performance dwindle on a five and 10-year basis at the halfway point of 2015.

The majority of them (82%) outperformed their passive benchmarks on a one-year basis – failed to for longer timeframes, research by S&P Dow Jones Indices (SPDJI).

In its mid-year ‘Spiva’ scorecard of active managers, SPDJI says 52% and 73% of active UK managers saw their outperformance dwindle over five and 10-year periods, respectively.

UK large-cap and mid-cap managers performed best with 92% of actively managed funds outperforming the S&P UK LargeMidCap Index over a one-year period. But over a 10-year period, 73% of them underperformed the benchmark.

Conversely, UK Small Cap-Equity funds did not perform well over any time period. Over one, three, five and 10 years, they were outperformed by their benchmarks for each period.

Around half of UK actively managed funds disappeared over a 10-year period. This was reduced for the emerging markets equity funds sector, which saw 27% of its funds disappear over the period.

The scorecard results are found in SPDJI’s Mid Year 2015 S&P Indices Versus Active Funds Scorecard, or ‘Spiva’ scorecard.

©2015 funds europe