Only 1 in 4 Canadian equity funds outperformed, says SPIVA

A scorecard of Canadian mutual funds, published by S&P Dow Jones Indices, shows that few managers outperformed their funds’ respective benchmarks during the one-year period ended June 30, 2016. (Fund performance was measured net of fees.)

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Highlights from the report include:

• Only one-quarter of Canadian equity funds (26.4%) outperformed the S&P/TSX Composite Index over the one-year period.
• Only 38% of dividend and income funds outperformed the S&P/TSX Canadian Dividend Aristocrats Index over the same period.
• Only 31% of managers in the Canadian Small-/Mid-Cap Equity category outperformed the benchmark (the S&P/TSX Completion Index).
• Only 19.4% of managers in the Canadian Focused Equity category outperformed the blended index, which allocates 50% of its weight to the S&P/TSX Composite Index, 25% of its weight to the S&P 500 and 25% of its weight to the S&P EPAC LargeMidCap Index.

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• The majority of international equity managers saw their returns lag the benchmark, with 42.5% of managers beating the S&P EPAC LargeMidCap Index. Similarly, only 29.8% of global equity managers had higher returns than the benchmark during the same period.
• No manager investing in U.S. equity delivered higher returns than the S&P 500 over a five-year horizon.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.