This report shows the performance of investing styles of mutual fund sectors for the ten years ending December 2016 versus the S&P 500. Most active-investment sectors underperformed.
Summarized Highlights:
* Fees negatively affect managers’ performance regardless of the type of investment account.
* The majority of managers in nearly every domestic equity category underperformed.
* Large-cap value mutual funds was the only category that outperformed (gross before fees).
* Mutual fund managers underperformed than institutional managers for most equity categories (net of fees).
* In large-cap equity, 84.60% of mutual fund managers and 79.58% of institutional accounts underperformed (net).
* 68.16% of large-cap mutual funds and 69.20% of institutional accounts underperformed (gross).
* In mid-cap equity, 96.03% (86.24%) of mutual funds and 92.02% (82.51%) of institutional accounts underperformed (gross).
* In small-cap equity, over 80% of both mutual funds and institutions underperformed (gross and net).
* Managers investing in international, international small-cap, and global equities fared equally to or better than their domestic counterparts.
* In fixed income, results were mixed depending on market segment. Institutional managers continued to outperform in U.S. products such as mortgage-backed securities (MBSs), investment-grade corporate bonds, and global credit.
* Munis saw a significant performance divergence between institutional accounts and mutual funds. 73% of mutual fund muni managers underperformed on net, while only 47% underperformed on a gross. That 26% difference is reduced to 12% among institutional muni managers. The median fee for muni mutual funds was 0.75%/yr, whereas the median fee for institutional muni accounts was 0.35%.
Submitted August 30, 2017 at 07:45PM by spockspeare http://ift.tt/2wTZNHz
