SPIVA Canada Scorecard for 2016 – under 1/5 outperforming one year…

The strong market run caused the majority of active managers investing in domestic equity to underperform their respective benchmarks, with just under one-fifth of Canadian equity funds (17.31%) outperforming the S&P/TSX Composite over the one-year period.

  • Over the same period, Canadian Focused Equity managers came the closest of all categories to a favorable result. These managers led the way, with 48.28% outperforming the blended index, which allocates 50% of its weight to the S&P/TSX Composite, 25% of its weight to the S&P 500®, and 25% of its weight to the S&P EPAC LargeMidCap. This marks the largest reversal in any group’s outperformance from the mid-year 2016 scorecard.
  • Foreign Equities: U.S. Equity managers saw a significant increase in their relative performance over the one-year period compared with the mid-year 2016 scorecard. Despite this increase, only 28.40% were able to provide alpha over the S&P 500 (CAD). Similar numbers were tallied by International Equity and Global Equity managers, with 23.81% and 24.14% outperforming, respectively.
  • All observation periods and categories resulted in inferior fund performance relative to the benchmark. In other words, less than the majority of managers outperformed their respective benchmarks, regardless of their mandate or performance period.

To read the full report => Click HERE!

Comments are closed.