Active managers outperformed their indices in June. 66% of US managers, 55% of emerging market managers and 53% of Europe managers outperformed their benchmarks on a gross basis.
Small- and mid-caps performed quite differently across the different markets. In the US, small- and mid- caps strongly outperformed large caps in June, while in Europe and in the emerging markets no such effect could be observed. As many of the active funds have an overweight exposure in this market cap area, the outperformance of US managers can be explained by this factor. The overall sector allocation had a rather neutral effect. Sectors like financials and materials performed very well and the majority of the active managers lost in terms of relative performance by not having a significant exposure to these sectors. On the other side, sectors like telecom and energy performed poorly and active managers profited from their underweight stance.
Please find the full ifund research news for July 2017 with charts and a summary of manager meetings attached on the left.