Active managers showed good results in May

Over a 12-month-rolling period, only 22% of Europe managers, 34% of US managers as well as 40% of emerging markets managers outperformed their benchmarks net of fees. Before fees, the respective numbers are 34%, 49% and 62%. The underperformance of small caps over the last 12 months hurt most managers in Europe as a majority had an overweight in this market cap cluster.

In May, the performance of active managers in all regions was quite good. 70% of emerging market managers, 60% of US managers and 51% of Europe managers outperformed their respective indices net of fees. In Europe as well as in the US, growth indices showed a better performance than value indices. As most active managers have a growth bias, they benefited from this development. Sector wise, financials performed poorly while consumer staples and healthcare showed a strong performance.

Please find the full fundinfo Research News - June 2019 edition including a summary of manager meetings attached on the left.

April was a good month for active managers

Over a 12-month-rolling period, only 22% of Europe managers, 22% of US managers as well as 39% of emerging markets managers outperformed their benchmarks net of fees. Before fees, the respective numbers are 35%, 36% and 62%. The underperformance of small caps over the last 12 months hurt most managers in Europe and the US since a majority had an overweight in this market cap cluster.

In April, the performance of active managers in the US and Europe was quite good. 58% of US managers, 56% of Europe managers and 51% of emerging markets managers outperformed their respective indices net of fees. In Europe as well as in the US, growth indices showed a better performance than value indices. As most active managers have a growth bias, they benefited from this development. Sector wise, healthcare performed poorly while information technology showed a strong performance in both regions.

Please find the full fundinfo Research News - May 2019 edition including a summary of manager meetings attached on the left.

Active US managers showed weak results in March

Over a 12-month-rolling period, only 22% of Europe managers, 28% of US managers as well as 35% of emerging markets managers outperformed their benchmarks net of fees. Before fees, the respective numbers are 27%, 42% and 49%. The underperformance of small caps in a declining market hurt most managers as a majority had an overweight in this market cap cluster.

In March, the performance of active managers in the US was very weak. Only 18% of US managers outperformed their respective indices net of fees. The picture is better in Europe (42%) and in the emerging markets even the majority (51%) of active managers could outperform their respective indices. In March, US small caps significantly underperformed large caps, which was the main reason for the weak performance of US managers. The same was not the case in Europe where large caps only slightly outperformed small caps. In Europe as well as in the US, growth indices showed a better performance than value indices. Financials performed poorly while consumer staples showed a strong performance.

Please find the full fundinfo Research News - April 2019 edition including a summary of manager meetings attached on the left.

Active US managers continue to outperform their benchmarks

Over a 12-month-rolling period, only 20% of Europe managers and 31% of US managers as well as 21% of emerging markets managers outperformed their benchmarks net of fees. The underperformance of small caps in a declining market hurt most managers as a majority had an overweight in this market cap cluster.

In February, the performance of active managers in the US was very convincing. 69% of US-managers outperformed their respective indices net of fees. The picture in the emerging markets is with 54% also quite good. In Europe, 48% of the managers beat their indices net of fees. During the continued market recovery in February, small caps in the US significantly outperformed large caps, which was again the main reason for the good performance of US managers. This was not the case in Europe where large caps outperformed small caps. In Europe, sectors like real estate, telecom and utilities showed weak performance. As most Europe managers have a low exposure to those industries, it helped the relative performance versus benchmark.

Please find the full fundinfo Research News - March 2019 edition including a summary of manager meetings attached on the left.

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

Over a 12-month-rolling period, only 23% of Europe managers and 25% of US managers as well as 24% of emerging markets managers outperformed their benchmarks net of fees. The underperformance of small caps in a declining market did hurt most managers as a majority had an overweight in this market cap cluster.

In January, the performance of active managers in the US was much more convincing. 58% of US-managers outperformed their respective indices net of fees. The picture in the emerging markets is with 52% a little bit weaker. In Europe, 43% of the managers could beat their indices net of fees. During the market recovery in January, small caps significantly outperformed large caps, especially in the US. In addition to that, growth performed better than value in the US, which was not the case in Europe. The majority of the US managers do have a growth rather than a value bias which contributed positively to relative performance as well. Finally, most US managers have a strong exposure to financials/industrials and both sectors showed very good results in January.

Please find the full fundinfo Research News - February 2019 edition including a summary of manager meetings attached on the left.

Active fund managers showed a weak performance in 2018

Over a 12-month-rolling period (i.e. in 2018), only 23% of Europe managers and 25% of US managers as well as 21% of emerging markets managers outperformed their benchmarks net of fees. The underperformance of small caps in a declining market did hurt most managers in 2018 as a majority had an overweight in this market cap cluster.

In December, the performance of active managers in all regions was also behind benchmark. Only 30% of Europe managers and 37% of emerging market managers outperformed their respective indices net of fees. The picture in the US was somewhat better; 47% of the managers could beat their indices net of fees. In December, large caps continued to outperform small caps and once again contributed to a weak performance of active managers. Sector-wise, utilities showed a very good performance in a difficult environment. The fact that most managers had an underweight in this sector also added to the poor results.

Please find the full fundinfo Research News - January 2019 edition including a summary of manager meetings attached on the left.

All Active Fund Managers were behind benchmark in November

Over a 12-month-rolling period, only 23% of Europe managers and only 28% of US managers as well as 19% of emerging markets managers outperformed their benchmarks net of fees.

In November, the performance of active managers in all regions was behind benchmark. Only 27% of Europe managers and 32% of emerging market managers outperformed their respective indices net of fees. The picture in the US is better, with 43% of the managers beating their indices net of fees.

In Europe, large caps outperformed small caps significantly. Sector-wise and globally, particularly defensive sectors such as utilities, consumer staples and healthcare outperformed. On the other side of the spectrum, energy and materials have been the main underperformers. The underperformance of small caps did hurt most managers in Europe as they have an overweight position in this market cap cluster. As this negative effect was not observable in the US, where small caps performed in line with large caps, US-managers showed better overall results.

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

Emerging market managers outrival Europe and US managers in October

Over a 12-month-rolling period, only 23% of Europe managers and only 22% of US managers as well as 29% of emerging markets managers outperformed their benchmarks net of fees.

In October, the performance of active managers across different regions differed considerably: while a thin majority of 52% of emerging markets managers outperformed their benchmarks, only 24% of Europe managers outperformed their respective indices net of fees. US managers performed in between; 30% outperformed their benchmarks.

In Europe as well as in the US, large caps outperformed small caps. In Europe, the US as well as in emerging markets, value stocks clearly outperformed growth stocks in October. Sector-wise and globally, particularly defensive sectors such as utilities and consumer staples outperformed. On the other side of the spectrum, industrials, energy and materials have been the main underperformers. This global sector performance also applied for the US, while in Europe, telecom has been the best performing sector and information technology the worst.

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

Europe managers significantly underperformed in September

Over a 12-month-rolling period, 37% of Europe managers and only 18% of emerging markets managers as well as 29% of US managers outperformed their benchmarks net of fees.

In September, the performance of active managers varied significantly compared to the previous month with respect to regions: while a majority of 53% of emerging markets managers outperformed their benchmarks, only 16% of Europe managers outperformed their respective indices net of fees. US managers performed in between; 34% outperformed their benchmarks.

In contrast to the previous month, in Europe as well as in the US, large caps significantly outperformed small caps in September. In Europe, value stocks clearly outperformed growth stocks; while, in the US, no overall significant difference in value vs. growth stocks could be observed over the same period. Sector-wise, particularly value sectors such as energy but also telecom and healthcare outperformed. On the other side of the spectrum, financials, technology and utilities have been the main underperformers.

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

Europe managers significantly outperformed in August

Over a 12-month-rolling period, 42% of Europe managers and only 17% of emerging markets managers as well as 34% of US managers outperformed their benchmarks net of fees.

In August, the performance of active managers varied significantly across different regions; while a majority of 68% of Europe managers outperformed their benchmarks, only 21% of emerging markets managers outperformed their respective indices net of fees. US managers performed in between; 41% outperformed their benchmarks.

Particularly in Europe but also in the US, large caps underperformed small caps in August, while growth stocks showed a stronger performance than value stocks. Sector-wise, especially technology but also healthcare and consumer discretionary outperformed. On the other side of the spectrum, energy and materials have been the main underperformers.

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

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.

Performance of Europe managers in June behind benchmark

Over a 12-month-rolling period, 46% of Europe managers and 39% of emerging markets managers as well as 33% of US managers outperformed their benchmarks net of fees.

In June, active managers in Europe could not convince; only 38% of the managers outperformed their respective indices net of fees. While emerging market managers showed a slightly better performance with 45% outperforming their respective benchmark, only 35% of US managers were able to beat their benchmarks.

In Europe as well as in the US, small caps performed in line with large caps in June and growth stocks showed a rather similar performance than value stocks. Sector-wise, utilities outperformed in Europe while consumer discretionary showed the weakest performance. The outperformance of utilities did hurt Europe managers as most of them have an underweight in this sector.

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

Europe managers strongly outperformed in May

Over a 12-month-rolling period, 45% of Europe managers and 43% of emerging markets managers as well as 46% of US managers outperformed their benchmarks net of fees.

In May, active managers in Europe showed very good results; 70% of the managers outperformed their respective indices net of fees. While emerging market managers also showed a good performance, US managers could not convince. 60% of emerging markets managers outperformed their indices in May, and only 38% of US managers were able to beat their benchmarks.

In Europe, small caps performed much better than large caps in May. Sector-wise, IT performed well in all regions, while telecom, financials and utilities underperformed. Value stocks underperformed growth stocks. The outperformance of small caps and growth contributed positively especially to the performance of Europe managers as they had an overweight position in those factor risks. In addition to that, the underperformance of sectors such as financials, telecoms and utilities also helped Europe managers in particular.

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

Rebound of value stocks in April hurt emerging market managers

Over a 12-month-rolling period, 33% of Europe managers and 36% of emerging markets managers as well as 48% of US managers outperformed their benchmarks net of fees.

In April, active managers in the US showed good results; 58% of the managers outperformed their respective indices net of fees. Europe managers and especially emerging market managers could not convince. 33% of Europe managers outperformed their indices in April and only 15% of emerging market managers were able to beat their benchmarks.

In all regions, small caps performed more or less in line with large caps in April. Sector-wise, energy stocks performed well in all regions, while consumer staples and healthcare underperformed. Value stocks outperformed growth stocks in April. The outperformance of energy contributed negatively especially to the performance of many emerging markets managers as they had an underweight position in this sector. In addition to that, the underperformance of growth stocks had a negative effect on EM managers in particular.

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

Active managers in all regions showed average results in March

Over a 12-month-rolling period, 54% of Europe managers and 46% of emerging markets managers as well as 41% of US managers outperformed their benchmarks net of fees.

In March, active managers in all regions showed average results. 48% of Europe managers outperformed their indices in March net of fees. In the US, 46% of the managers outperformed their respective indices net of fees and also 35% of emerging market managers were able to beat their benchmarks.

In all regions, size factors did not play an important role as small caps performed more or less in line with large caps in March. Sector-wise, utility and energy stocks performed well in all regions and contributed negatively to the performance of many active funds as they had an underweight position in those sectors. In addition to that, the underperformance of technology stocks had a negative effect on US managers in particular.

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

Active managers in all sectors showed very good results

Over a 12-month-rolling period, 58% of Europe managers and 49% of emerging markets managers as well as 43% of US managers outperformed their benchmarks net of fees.

In February, active managers in all regions showed very good results. 68% of Europe managers outperformed their indices in February net of fees. In the US, 64% of the managers outperformed their respective indices net of fees and also 71% of emerging market managers were able to beat their benchmarks.

In Europe as well as in emerging markets, small caps performed better than large caps in February. As many of the active funds have an overweight exposure in small caps, the outperformance can be mainly explained by this factor. Sector wise, technology stocks performed well in all regions and contributed positively to the performance of many active funds. The outperformance of technology stocks had a positive effect on the US managers in particular. Last but not least, some of the active managers had a defensive positioning with an elevated cash quote, which helped in a correcting market.

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

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.

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.

Emerging market managers outperformed in November

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.

US Emerging market managers underperformed in October

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.

US managers beat their benchmarks in September

Over a 12-month-rolling period, 41% of US managers and 50% of emerging markets managers outperformed their benchmarks net of fees. Only 30% of Europe managers could beat their benchmarks net of fees.

Europe managers underperformed their indices in September. Only 38% outperformed their benchmarks net of fees. In the US, 52% of the managers outperformed their respective indices net of fees. 54% of emerging market managers were able to beat their benchmarks.

In the US, small caps outperformed large caps by a significant amount in September. As many of the active funds have an overweight exposure in small caps, the outperformance can be mainly explained by this factor. In the other regions, the picture looks more complex as small caps outperformed large caps only by a small amount. The sector allocation of emerging market managers contributed positively as avoided sectors like mining and utility showed a rather weak performance, favoured sectors like finance, healthcare and industrials showed good performance results. European managers underperformed after fees in the absence of significant alpha sources.

Please find the full fundinfo Research News for October 2017 including a summary of manager meetings attached on the left.

Homogeneous sector and style performance in August makes it difficult to outperform

Over a 12-month-rolling period, 37% of US managers and 49% of emerging markets managers outperformed their benchmarks net of fees. Only 30% of Europe managers could beat their benchmarks net of fees.

Europe managers underperformed their indices in August. Only 36% outperformed their benchmarks net of fees. In the US, only 26% of the managers outperformed their respective indices net of fees. 54% of emerging market managers were able to beat their benchmarks.

European sectors developed very homogeneously in August. This applies also to different market capitalisations and styles. The difference in performance between the best sector and the worst sector was just 1%. In such an environment it is very difficult for active managers to outperform. In the US, the performance differences were more heterogeneous as the energy sector showed a minus of more than 5% and utilities increased more than 2%. In addition to that, small caps underperformed large caps. As many of the active funds have an overweight exposure in this market cap area, the underperformance can be partly explained by this factor.

Please find the full fundinfo Research News for September 2017 including a summary of manager meetings attached on the left.