Tag Archives: persistence scorecard

The Skill of Champions in Sports & Active Management

The last few days have been a feast of entertainment for the sporting enthusiast; the Champions League Final, the Monaco Grand Prix, and the NBA Conference Finals were all on the menu.  While the sports represented are distinct, these events have something notable in common: the persistence of their participants.  The same two teams reached Read more […]

Introducing the Persistence Scorecard for Latin America

Following similar studies performed by S&P Dow Jones Indices on active funds in the U.S. and Australia, we introduce the Persistence Scorecard to the Latin America region. The two aforementioned studies have demonstrated that top-performing active funds have little chance of repeating that success in subsequent years. To determine if similar conclusions can be made Read more […]

Why Indices Matter to SMSF Trustees

I spent a recent weekend at the Self-Managed Superannuation Fund (SMSF) Expo talking to SMSF trustees about indices. While I often spend Monday through Friday talking indices, to spend Saturday and Sunday chatting about indices was something new. The SMSF Association hosted the first SMSF Expo in Australia, attracting over 1,500 people over the three-day Read more […]

Getting What You Pay For

Earlier this week, the Wall Street Journal featured a long article arguing that Morningstar’s star ratings for mutual funds were a “mirage.”   Since these ratings exert a powerful influence over fund flows, their usefulness is obviously of keen interest to investors.  To its credit, Morningstar, although arguing that its ratings are a “worthwhile starting point,” Read more […]

Tips and Tricks in Reading the Persistence Scorecard

Much has been written about the persistence of manager performance.  The S&P Persistence Scorecard attempts to track the status of top quartile and top half managers over specified subsequent periods.  Over the years, we have received a fair amount of inquiries from our readers regarding the computation, methodology, and interpretation of results.  This blog attempts Read more […]

If the Performance Doesn’t Get You, the Taxes Might

Assets are shifting from active to passive: “investors pulled $23 billion out of actively managed U.S. equity funds, extending the group’s streak of outflows to 33 consecutive months.  During 2016, passive fund strategies in the United States took in a record $504.8 billion.”[1]  In response to this, an elegant point has been made “that the Read more […]

Manager Outperformance: Is it Luck or Skill?

Over the years, we frequently hear from our SPIVA® and Persistence Scorecard readers that they have found their star manager or their own Warren Buffet—someone who can successfully beat the benchmark repeatedly.  Based on our 15 years of publishing the SPIVA U.S. Scorecard, we know that, on average, around 20% to 30% of domestic equity Read more […]

The Making of a Passivist

I have few memories of my school French, but one of the fondest is of Moliere’s Monsieur Jourdain, who was delighted to learn in middle age that he had been speaking prose for the last 40 years.  Similarly, I did not realize until recently that I was a “passivist,” as the Wall Street Journal has now anointed the Read more […]

Are You Looking for Outperforming Funds?

When one is paying management fees for the investment in active funds, one might reasonably expect the funds to outperform benchmarks and resist downturn when the market is volatile.  However, results from our S&P Indices Versus Active (SPIVA®) Scorecards[1] suggest this expectation is often not met.  SPIVA reports across different regions, including the U.S., Canada, Read more […]

Playing the Loser’s Game

Forty years ago, Charles Ellis characterized active investment management as a “loser’s game.”  From the perspective of the mid-1970s, Ellis argued that since institutional investors had come to dominate the U.S. equity market, they could no longer generate market-beating returns by taking advantage of less well-informed amateurs.  Investment management had become a game played by professionals against other Read more […]