Tag Archives: SPIVA

A New Eden, Or Fewer Excuses

In our May dispersion dashboard, we note that “If there is ever such thing as a “stock-pickers’ market”, then the month of May 2017 – at least in some regions – might be the closest approximation we have seen for a decade.” The subject of what, exactly a “stock-pickers’ market” might look like, and how Read more […]

Three Takeaways From the SPIVA U.S. Year-End 2016 Scorecard

S&P Dow Jones has been reporting the SPIVA® U.S. Scorecard for 15 years now.  Over the years, it has helped contribute to the active versus passive debate in a systematic and objective manner.  While some market segments or styles of active management can be cyclical in their ability to outperform, the secular trends in reported Read more […]

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 Read more […]

15 Years of SPIVA – Where Does the Active Versus Passive Debate Go From Here?

In the inaugural publication of the Journal of Portfolio Management in 1974, Nobel Laureate Paul Samuelson wrote that there is no “brute fact” that “there could exist a subset of decision makers in the market capable of doing better than the averages on a repeatable, sustainable basis.”[1]  That article partly inspired John Bogle to launch Read more […]

In Which Market Cycles Do Active Funds Add the Most Alpha?

Those who invest in active funds may expect portfolio managers to deliver excess returns over their benchmark indices for the fee they paid.  However, results from the SPIVA® (S&P Indices Versus Active) India Scorecard suggest this may not always be the case.  The scorecard, which is a biannual report, attempts to capture the performance of Read more […]

SPIVA® India Year-End 2016 Scorecard: Underperformance of Active Funds Versus S&P BSE Benchmark Indices

Various events during the second half of 2016, both global—such as the U.S. Federal Reserve rate hike and the U.S. elections—and domestic—such as passage of the GST bill in Parliament and demonetization—kept Indian markets volatile.  Over the one-year period ending December 2016, Indian equity markets underperformed Indian bond markets.  The S&P BSE 100, which seeks 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 […]

SPIVA® South Africa: Active Equity Funds Followed the Global Trend—They Underperformed

South African equity markets have once again performed poorly, especially in comparison with global equity markets.  One reason for this drab performance was that its GDP contracted 1.2% in the first quarter, although the price of gold—one of the country’s key exports—increased and the South African rand recovered somewhat with respect to other currencies. Poor 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 […]