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SPIVA® Europe Year-End 2020

SPIVA Canada Year-End 2020

SPIVA U.S. Year-End 2020

SPIVA Australia Year-End 2020

Latin America Persistence Scorecard: Mid-Year 2020

SPIVA® Europe Year-End 2020

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Andrew Innes

Head of Global Research & Design

S&P Dow Jones Indices

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Andrew Cairns

Senior Director, Global Research & Design

S&P Dow Jones Indices

S&P Dow Jones Indices has been the de facto scorekeeper of the ongoing active versus passive debate since the first publication of the S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard in 2002.  The SPIVA Europe Scorecard measures the performance of actively managed European equity funds denominated in euro (EUR), British pound sterling (GBP), and other European local currencies against the performance of their respective S&P DJI benchmark indices over 1-, 3-, 5-, and 10-year investment horizons.

YEAR-END 2020 HIGHLIGHTS

The year 2020 proved to be a tumultuous one for European investors, with COVID-19 and subsequent national lockdowns grinding the economies of Europe to a halt.  The uncertainty surrounding the pandemic provided an ideal opportunity for active fund managers to prove their worth in what was an extremely volatile period.

  • Of active euro-denominated Europe Equity funds, 37% underperformed the S&P Europe 350® in 2020. This figure rose to 75% over 5 years and 86% over 10 years.

As the first wave of COVID-19 peaked in March 2020, the S&P Europe 350 benchmark saw its biggest single-month loss in more than 10 years.

  • Active fund investors were not immune to the troubles; on an asset-weighted basis Europe Equity funds also suffered their largest single-month loss in more than 10 years. This tail-risk event was similarly seen in 13 of the remaining 22 fund categories and 19 of the 22 benchmarks.

The sharp drawdown was followed by a modest recovery, aided by monetary and fiscal stimulus packages swiftly assembled by central banks and governments.  As the first wave of COVID-19 began to settle, markets calmed and grew at a steady pace over the summer months.  News of a vaccine broke in early November and immediately sent markets soaring.

  • The renewed optimism saw the majority of fund categories and benchmarks post their largest single-month gains in the past 10 years. Out of 23 categories, 14 exhibited their largest single-month return in over 10 years when measured on an asset-weighted basis.  The same was true for 17 out of 23 benchmarks.

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