Vast majority of US active funds underperformed in past year

EM managers fared better

Nine out of ten US equity funds underperformed their benchmarks in the year to the end of June, although emerging market managers were more likely to outperform, according to new research.

According to the FT, a semi-annual report from S&P Global found 90.2% of actively-managed US mutual funds investing in domestic equities were beaten by their benchmarks, when returns are calculated net of fees, for the year ending 30 June 2016. There was not a single category (including large caps, small caps or a combination, as well as growth or value) where more than a quarter of managers across any market cap succeeded in beating their benchmark. "There is nothing redeeming to say about the managers in the equity space," said Aye Soe, global research director at S&P. "They said...