Active managers were significantly behind benchmark in July

Over a 12-month-rolling period, 26% of Europe managers and 24% of emerging markets managers as well as 27% of US managers outperformed their benchmarks net of fees.

In July, the performance of most active managers was behind benchmark; only 15% of Europe managers outperformed their respective indices net of fees. Emerging market managers and US managers showed a slightly better performance with 33% and 35% outperforming their respective benchmarks.

In Europe as well as in the US, small caps underperformed large caps in July and growth stocks showed a weaker performance than value stocks. Sector-wise, healthcare, financials and telecom outperformed. The underperformance of small caps and value did hurt as most of the managers have an overweight in those factors. In addition to that, most of the active managers have a rather small sector weight in financials and telecom.

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