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 CATEGORY COMPARISON INDEX ONE-YEAR THREE-YEAR FIVE-YEAR TEN-YEAR
DATA IN EUROS (EUR)
Europe Equity S&P Europe 350 80.41 73.64 74.17 88.25
Eurozone Equity S&P Eurozone BMI 79.96 84.46 87.84 90.41
Nordic Equity S&P Nordic BMI 39.13 46.51 52.78 75.76
Global Equity S&P Global 1200 88.52 90.47 97.95 98.45
Emerging Markets Equity S&P/IFCI 93.62 86.94 98.17 100
U.S. Equity S&P 500 77.2 97.08 97.86 97.91
France Equity S&P France BMI 66.97 66.67 77.87 84.12
Germany Equity S&P Germany BMI 87.91 78.02 79.55 82.3
Italy Equity S&P Italy BMI 60.78 64 57.89 76.09
Spain Equity S&P Spain BMI 65.52 67.11 70.33 81.97
Netherlands Equity S&P Netherlands BMI 62.5 81.82 93.75 97.06

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.
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