Actively managed domestic equity mutual funds lagged behind their respective S&P benchmarks in almost all categories in 2010, according to an S&P report released Tuesday.
Still, the S&P Indices vs. Active Funds scorecard report noted that elements of the latest data “can be favorably interpreted by proponents of both active and passive management.”
Results were scattered across different style boxes. On a one-year basis, small-cap value equity managers delivered the strongest results, with just over 60% beating the S&P SmallCap 600 Value index, while just over half of large-cap growth and multicap growth managers likewise outperformed their respective benchmarks.
In a telephone interview, Srikant Dash, a managing director, channel management, at S&P Indices, said while the one-year scorecard results bounce around from year to year, the three- and five-year numbers more consistently show less than half of active managers topping their indexes.
For the latest scorecard, large-cap value managers were a dramatic exception; while just less than 29% managed to beat the S&P 500 Value index on a one-year basis, more than 65% have managed to outpace it on both a three- and five-year basis.
However, in a year when small-cap and midcap equity funds outpaced large-cap returns, the scorecard showed just over half of all domestic equity funds topping the broad S&P Composite 1500 benchmark — dominated by large-cap returns — on a one-year basis, but 51.68% trailed the S&P 1500 on a three-year basis and 57.63% were below it over five years.