S&P index bests most actively managed funds

The Standard & Poor’s 500 stock index outperformed most actively managed mutual funds for the past five years, according to the New York-based firm’s latest research. For the five-year period ended June 30, the S&P 500 outperformed 68.6% of actively managed large-cap funds. In addition, the S&P MidCap 400 outperformed 75.9% of actively managed mid-cap funds and the S&P SmallCap 600 outperformed 77.8% of actively managed small-cap funds. The results were announced as Standard & Poor’s Index Services introduced a new version of its Standard & Poor’s Indices Versus Active Funds Scorecard yesterday. The firm also reported on international returns. The S&P Global 1200 outperformed 70.1% of global equity funds over the five-year period. The S&P International 700 outperformed 86.5% of international equity funds and the S&P IFCI Composite outperformed 73.9% of emerging market funds. In the fixed income area, more than 75% of actively managed domestic bond funds were outperformed by indices. Emerging-market bond funds was the only category where a majority of active managers beat the benchmark, the firm reported. The scorecard program includes quarterly performance data and covers more than 3,500 actively managed funds.