SPIVA® Latin America Year-End 2016 Results

Equity markets in Latin America saw gains across the board in 2016, with Brazil being one of the leaders, as the S&P Brazil BMI (BRL) returned 37.90%.  The Chilean market saw the largest yearly return since 2010, with a return of 13.53% for the S&P Chile BMI (CLP), while the S&P Mexico BMI (MXN) returned 6.99%.

As shown in Exhibit 1, the majority of active fund managers in Latin American markets were unable to outperform their respective benchmarks for all categories measured—one-, three-, and five-year periods.

Exhibit 2 shows the rolling five-year underperformance numbers reported in the SPIVA Latin America Scorecard since it was introduced in 2015.  For all categories, the majority of managers underperformed their benchmark for a five-year time horizon, regardless of the report end date.  “Consistent underperformance” is a suitable characterization.

For more details of the SPIVA Latin America Year-End 2016 Scorecard, please click here.

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