Spiva scores show active Europe, UK equity funds continue to underperform

Latest data from the  S&P Indices Versus Active Funds (Spiva) scorecard show that a significant share of Europe and UK equity funds underperformed their benchmarks over the past year, while many continue to underperform over the longer term.

First published in 2002 to measure US actively managed mutual funds, the scorecard has been extended to other regions globally. The Europe Scorecard measures equity funds denominated in euro, sterling and other local currencies against the performance of their respective S&P DJI benchmark indices over one, three, five and 10-year periods. In 2015, the European markets covered was extended to domestic funds from Denmark, Italy, the Netherlands, Poland, Spain Sweden and Switzerland.

As noted in the data, up to 93% of actively managed funds may be underperforming their relevant benchmark – in this instance in the area of emerging market equities.

Report 1: Percentage of European Equity Funds Outperformed by Benchmarks
FUND CATEGORYCOMPARISON INDEXONE-YEARTHREE-YEARFIVE-YEARTEN-YEAR
DATA IN EUROS (EUR)
Europe EquityS&P Europe 35080.4173.6474.1788.25
Eurozone EquityS&P Eurozone BMI79.9684.4687.8490.41
Nordic EquityS&P Nordic BMI39.1346.5152.7875.76
Global EquityS&P Global 120088.5290.4797.9598.45
Emerging Markets EquityS&P/IFCI93.6286.9498.17100
U.S. EquityS&P 50077.297.0897.8697.91
France EquityS&P France BMI66.9766.6777.8784.12
Germany EquityS&P Germany BMI87.9178.0279.5582.3
Italy EquityS&P Italy BMI60.786457.8976.09
Spain EquityS&P Spain BMI65.5267.1170.3381.97
Netherlands EquityS&P Netherlands BMI62.581.8293.7597.06

Other data contained in the latest Spiva Scorecard report for Europe include ‘survivorship bias’ and asset weighted performance over discrete periods.

Click here to read the full report: Spiva_Europe_Scorecard

ABOUT THE AUTHOR
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 16 years he has been based in London writing about funds and investments . From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope.

Read more from Jonathan Boyd

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