How many funds within a peer group are ahead of benchmark?

Over a 12-month-rolling period, 32% of US managers and 45% of emerging markets managers as well as 45% of Europe managers outperformed their benchmarks net of fees.

58% of Europe managers outperformed their indices in January net of fees. In the US, only 33% of the managers outperformed their respective indices net of fees and only 29% of emerging market managers were able to beat their benchmarks.

In Europe, small caps performed better than large caps in January and the value style outperformed the growth style. As many of the active funds have an overweight exposure in small caps, the outperformance can be partly explained by this factor. Last but not least, the sector exposure did not contribute to the outperformance. The majority of the outperformance can therefore be explained by pure stock picking capabilities of the Europe managers. For the other regions, stock picking has been less successful. In the absence of any other significant market-cap, style or sector allocation effects, the majority of the fund managers in those regions were behind benchmark.

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