Tag Archives: persistence scorecard

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 […]

The Persistence of Non-Persistence

The phrase “past performance is not a guarantee of future results” has never rung more true for active mutual funds. Our semi-annual publication, the Persistence Scorecard, takes a look at the performance of top quartile active funds over three- and five-year consecutive 12-month periods. Based on the most recently released report, out of 265 large Read more […]