Large-cap growth equity funds outperformed their value counterparts for the quarter ended Sept. 30, according to a quarterly mutual fund review by Mercer Investment Consulting. For longer periods, including year-to-date, 1-, 5- and 10-year periods, value funds continue to hold the lead.
For the third quarter, the median large-cap growth equity fund in Mercer's universe of 459 funds posted a 4.7% gain, better than the benchmark Russell 1000 Growth index's 4% gain for the same period. By contrast, the median large-cap value equity fund in Mercer's 365-fund universe returned 3.5%, below the Russell 1000 Value index's 3.9% gain.
Among small-cap funds, the median small-cap growth fund in Mercer's universe of 269 funds gained 5.7%, below the benchmark Russell 2000 Growth index's 6.3% gain. The median small-cap value fund in Mercer's 114-fund universe gained 4.6%, well above the Russell 2000 Value index's 3.1% advance.
International and emerging market equity funds had the strongest gains for the quarter. The median international equity fund in Mercer's 377-fund universe returned 11%, above the benchmark MSCI EAFE index's 10.4% rise. The median emerging market equity fund in Mercer's 70-fund universe jumped 18.2%, slightly higher than the benchmark MSCI EMF index's 18.1% gain.