Over a 12-month-rolling period, only 22% of Europe managers, 28% of US managers as well as 35% of emerging markets managers outperformed their benchmarks net of fees. Before fees, the respective numbers are 27%, 42% and 49%. The underperformance of small caps in a declining market hurt most managers as a majority had an overweight in this market cap cluster.
In March, the performance of active managers in the US was very weak. Only 18% of US managers outperformed their respective indices net of fees. The picture is better in Europe (42%) and in the emerging markets even the majority (51%) of active managers could outperform their respective indices. In March, US small caps significantly underperformed large caps, which was the main reason for the weak performance of US managers. The same was not the case in Europe where large caps only slightly outperformed small caps. In Europe as well as in the US, growth indices showed a better performance than value indices. Financials performed poorly while consumer staples showed a strong performance.
Please find the full fundinfo Research News – April 2019 edition including a summary of manager meetings attached on the left.