Over a 12-month-rolling period, 44% of US managers and 49% of emerging markets managers outperformed their benchmarks net of fees. Only 31% of Europe managers could beat their benchmarks net of fees.
Europe managers underperformed their indices in October. Only 42% outperformed their benchmarks net of fees. In the US, 45% of the managers outperformed their respective indices net of fees. In the absence of any other significant factors, fees have been the main reason for this underperformance. Gross of fees, 49% and 48% respectively have beaten their benchmarks. Only 26% of emerging market managers were able to beat their benchmarks.
The underperformance of emerging market managers in October is owed to a number of factors. As the rally of Tencent, Samsung and Alibaba continued, the underweight position of most active managers in those stocks did contribute negatively. Other managers have been caught on the wrong foot by a strong recovery of the Indian stock market in October. Last but not least, some funds were affected by the slump in the Brazilian market following several months of strong growth.
Please find the full fundinfo Research News for November 2017 including a summary of manager meetings attached on the left.