Active managers outperformed in 2017 gross of fees

In 2017, the majority of active managers in all regions could outperform their respective indices gross of fees. The main reason for this outperformance was a style bias of most active managers. Over the whole year, most of the active managers had a growth bias in their portfolio and growth stocks outperformed value stocks significantly. In addition to that, mid-caps showed in Europe a better performance than large caps and most European managers have an overweight in this market cap cluster.

On a net basis though, after deductions of fees, the picture changes significantly and only emerging markets managers still outperformed slightly. 52% of emerging market managers, 42% of Europe managers and 37% of US managers have been able to outperform their benchmarks. Nevertheless, results are much better than in 2016, where only 8% of Europe managers, 14% of US managers and 39% of emerging markets managers could beat their benchmarks net of fees.

In December 65% of US managers, 40% of Europe managers and 37% of emerging markets managers could outperform their benchmarks net of fees. The good results in the US were mainly driven by good stock selection.

Please find the full fundinfo Research News - January 2018 edition including a summary of manager meetings attached on the left.