Less Than Half of U.S. Active Managers Outperformed Their Benchmark in H1

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Less Than Half of U.S. Active Managers Outperformed Their Benchmark in H1 © Reuters. Less Than Half of U.S. Active Managers Outperformed their Benchmark in H1

By Sam Boughedda

According to the S&P Dow Jones Indices, which published its mid-year 2022 SPIVA U.S. Scorecard on Thursday, actively managed large-cap U.S. equity funds were on track for their best underperformance rate since 2009, with less than half outperforming their benchmark in the first six months of this year.

S&P Dow Jones Indices stated that underperformance rates across domestic and international equities and fixed income were slightly more elevated in categories that saw the most extreme benchmark declines. In addition, “a turn to outperformance from value accompanied a disappointing period for growth managers, 79%, 84% and 89% of whom underperformed in the large-, small- and mid-cap Growth categories, respectively, in H1.”

The firm said it echos a frequent theme of SPIVA scorecards over the past 20 years, that underperformance rates “generally rose with the length of the period in which they were measured.”

Across 15 years, over 70% of funds underperformed in 37 out of 38 reported categories.

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