Mid- and Small-Cap Indexes Score Strong on Q107 SPI VA

April 25, 2007 (PLANSPONSOR.com) - Indexes led active funds in both the mid- and small-cap categories in the first quarter of 2007, according to the latest Indices Versus Active Funds Scorecard (SPIVA) data from Standard & Poor's.

An S&P news release said that t he S&P MidCap 400 outpaced 84.8% of mid-cap funds and the S&P SmallCap 600 bested 53.5% of offerings in the small-cap arena. Actively managed funds performed better in the large-cap category, however, with 64.1% beating the S&P 500.

Looking at longer time periods, indexes continue to exceed a majority of active funds.  Over the past three years (and five years), the S&P 500 has outperformed 65.7% (72.2%) of large-cap funds, the S&P MidCap 400 has beaten 68.6% (77.4%) of mid-cap funds, and the S&P SmallCap 600 has bested 80.2% (77.7%) of small-cap funds. 

In the first quarter of 2007, 63.9% of global funds outperformed the S&P/Citigroup PMI World Index. Indexes led in other international categories, however.  The S&P/Citigroup PMI World ex U.S. outpaced 58.5% of international funds and the S&P/Citigroup EMI World ex U.S. led 52% of international small company funds.

The S&P/IFCI Composite also outperformed 58.4% of actively managed emerging markets funds.  Similar to domestic equities, international indexes also lead over the longer-term three- and five-year periods.

For the first quarter, six of eight domestic taxable fixed income indexes (Lehman Brothers Bond Indices) have outpaced active funds, with active long-term government and convertible funds being the exceptions.  In 2007, the Lehman Brothers Global Aggregate Bond Index outperformed 64.7% of global fixed income funds, while 68.2% of emerging markets funds beat out the Lehman Brothers Emerging Markets Index and 94.4% of active global multisector funds outperformed the Lehman Global Aggregate Bond Index for the quarter.     

The first quarter 2007 SPIVA data is at  www.spiva.standardandpoors.com .