Over a 12-month-rolling period, only 33% of US managers as well as 33% of Europe managers outperformed their benchmarks net of fees. 53% of emerging market managers could beat their benchmarks net of fees.
Europe and emerging market managers achieved good results in November. 52% of Europe managers and 67% of emerging market managers outperformed their benchmarks net of fees. Gross of fees, even 58% and 69% respectively have beaten their benchmarks. In the US, only 28% of the managers outperformed their respective indices net of fees. The performance of different styles (value versus growth), market cap clusters (small cap versus large cap) and sectors have been in a small range and had no significant effect on the performance of European managers. The majority of the outperformance is therefore due to good stock selection and a slightly more defensive positioning. The outperformance of emerging market managers in November is owed to the better performance of small caps as well as due to fact that the rally of Tencent and Alibaba is losing steam and the price of Samsung Electronics even declined. The underweight position of most active managers in those stocks did contribute positively.
Please find the full fundinfo Research News - December 2017 edition including a summary of manager meetings attached on the left.