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Less than half of active managers in the US beat their benchmark in the first half

Less than half of active managers in the US beat their benchmark in the first half

Written by Sam Bogda

According to S&P Dow Jones Indices, which published the SPIVA US Scorecard mid-2022 on Thursday, US large-cap actively-managed equity funds were on track to post their best underperformance rate since 2009, with less than half outperforming their benchmark index in the first . Six months this year.

The S&P Dow Jones indices reported that underperformance rates across domestic and international equities and fixed income were slightly higher in the categories with the largest record declines. In addition, โ€œthe shift to outperformance from value was accompanied by a disappointing period for growth managers, with 79%, 84% and 89% of them underperforming in the large, small and medium growth categories, respectively, in the first half.โ€

The company said it reflects a recurring theme of SPIVA scorecards over the past 20 years, that rates of underperformance “generally rose with the length of time they were measured.”

Over a 15-year period, more than 70% of funds underperformed in 37 of the 38 reported categories.

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