The scorecards will provide quarterly updates regarding the performance of Canadian mutual funds versus their relevant benchmarks, according to an S&P press release. Already in place in the US, the scorecards adjust for survivorship bias and show both equal- and asset-weighted results.
SPIVA results for the Canadian mutual fund industry show that in the past five years, 35.4% of actively managed funds in the Canadian equity category outperformed the S&P/TSX Composite Index, while 34.3% of actively managed funds in the Canadian SmallCap category outperformed thier benchmark, the S&P/TSX SmallCap Index. Meanwhile, only 25.8% of actively managed funds in the US Equity category have outperformed the S&P 500.
Over three- and five-year horizons, benchmark indices have returns that are higher than the asset- and equal-weighted average returns for active funds in all three categories, S&P reports.
Over the past year, SPIVA shows that only 17.5% of actively managed Canadian Equity mutual funds have outperformed the S&P/TSX Composite Index. US Equity mutual funds have done only slightly better, with 25.3% outperforming the S&P 500. Canadian SmallCap has faired much better, however, with 71.4% of these actively managed funds beating the S&Ps Canadian small cap index.
For a complete third quarter SPIVA Canada scorecard, please see www.spiva.standardandpoors.com .