Active growth strategies led across all capitalization segments over the one-year period ended June 30, with 74% of large-cap growth, 83% of midcap growth and 89% of small-cap growth funds topping their benchmarks. The report noted that this recent success did not offset long-term underperformance, as 92% of large-cap growth, 74% of midcap growth and 75% of small-cap growth strategies underperformed over the 15 years ended June 30.
On the other hand, active value strategies, continued to underperform against their benchmarks, with 73% of large-cap value, 59% of small-cap value and 91% of multicap value strategies underperforming over the year ended June 30. Midcap value proved to be the one exception, with 62% outperforming the S&P MidCap 400 Value index for the period.
More than two-thirds of value funds across all capitalization segments underperformed their benchmarks for all investment horizons longer than three years.
Meanwhile, active fixed-income managers also struggled during this period, with most strategies underperforming their benchmarks in 13 of 14 categories.
Government bond funds struggled across tenors, with 92%, 63%, and 68% underperforming in the long, intermediate and short-term ranges, respectively, for the 12 months ended June 30.
"Government bond funds in general had a miserable decade, as an incredible 99% of long bond funds failed to clear the bar over the past 10 years, along with 82% and 75% of intermediate and short bond funds, respectively," the report said.
Investment-grade bond funds, meanwhile, had mixed results. Though virtually all long funds (98%) and most short funds (90%) underperformed, half of intermediate funds outperformed their benchmarks over the yearlong period.
Sixty-eight percent of high-yield bond strategies underperformed their benchmarks, according to the report. Long term, more than 97% of high-yield and investment-grade long bond strategies underperformed their benchmarks over the 10 years ended June 30, though about half of the investment-grade intermediate and short funds did outperform during this period.