The median EAFE Plus universe manager had a return of -0.34% in the second quarter, underperforming the benchmark MSCI EAFE Index by 0.56%, according to data tracked by InterSec Research Corp, a consultant to the global asset management industry.
Dragging the overall performance figures lower for the quarter were investments in emerging markets, which lost 9.6% during the April to June period. This was a significant departure from the returns of emerging markets in recent years, which outperformed developed markets by 15.5% for the three years ending December 2003. For the first half of 2004, the margin of outperformance has declined to 9.8%, InterSec said.
Also lower was the median global emerging markets manager reporting a -9.9% return for the second quarter, erasing the gains made in the first quarter and turning in a -1.1% return for the first half of 2004. Comparatively, the benchmark MSCI EMF index did slightly better with a -0.9% return for the first half.