The SPIVA® Latin America Year-End 2019 Scorecard was released last week, showing divergent results for Latin American equities markets. The report covers Brazil, Chile, and Mexico in selected fund categories. In the framework of stable inflation, a decline in unemployment, and lower interest rates, 2019 was a great year for Brazilian equities markets, as measured by its benchmarks across three fund categories; the S&P Brazil BMI returned 35%, the S&P Brazil LargeCap returned 26%, and the S&P Brazil MidSmallCap returned 55%. Compared with Brazil, Mexico’s equities market was positive, but with moderate results; the S&P/BMV IRT increased 2%. The case of Chile was much more unfortunate, especially considering the recent social unrest, with the S&P Chile BMI falling 8.8% during the 12-month period ending on Dec. 31, 2019.
The rise in the Brazilian equities markets lead to active large-cap fund managers’ outperformance against the S&P Brazil LargeCap during the one- and three-year periods, although they couldn’t repeat the performance for longer-term periods. Mexican active equities fund managers and Chilean active equities fund managers failed to beat their benchmarks over the one-, three-, five-, and ten-year periods (see Exhibit 2). Mexican funds led survivorship across the four observation periods.
For more details on the SPIVA Latin America Year-End 2019 Scorecard, please click here.