Inaugurated in 2002, the S&P Indices versus Active (SPIVA) U.S. Scorecard has since been extended to Australia, Canada, Europe, India, Japan, Latin America, South Africa and the Middle East & North Africa (MENA), allowing investors to experience the active versus passive debate on a global scale. First published in 2014, the semiannual SPIVA Europe Scorecard reports on the performance of actively managed funds domiciled across Europe.
Mid-Year 2023 Highlights
It was a challenging first half of 2023 for active managers in European equities, with over one-quarter of 22 categories recording underperformance rates of 90% or higher. Fixed income managers had a better start to the year in relative terms, with no categories registering underperformance rates of over 90%. Across both asset classes, however, underperformance rates increased to a similarly high average over a 10-year horizon.
- In H1 2023, 72% of British pound sterling-denominated and 76% of euro-denominated actively managed Europe Equity funds underperformed the S&P Europe 350®, while 77% of Eurozone Equity funds underperformed the S&P Eurozone BMI.
- Euro-denominated Global Equity funds maintained a relatively high underperformance rate over longer time horizons. Over the 10-year period ending June 2023, 98% of funds underperformed the S&P Global 1200®.
- British pound sterling- and euro-denominated U.S. Equity funds performed similarly, with 71% and 74% underperforming in the first half of 2023 in GBP and EUR, respectively, and 95% and 97%, respectively, underperforming over a 10-year horizon.
- Only 12% of Poland Equity funds lagged the S&P Poland BMI in H1 2023, the lowest underperformance rate among major single-country categories.
- Among country categories, 94%, 96% and 99% of France, Italy and Spain Equity funds lagged their benchmarks, respectively, in the first six months of 2023.
- Actively managed K. Large-/Mid-Cap Equity funds had a good start to the year on a relative basis, with an underperformance rate of just 47% in H1 2023.
- Meanwhile, 95% of actively managed U.K. Small-Cap Equity funds underperformed the S&P United Kingdom SmallCap in the first six months of 2023, the highest ever underperformance rate for this category.
- For Government Bond (USD) funds, 86% underperformed the iBoxx Global Government United States in H1 2023, the highest underperformance rate among our fixed income categories. Meanwhile, Government Bond (GBP) funds performed relatively better, with 52% underperforming the iBoxx Sterling Gilts in the first half of 2023, although underperformance increased to 95% when measured over a 10-year period.
- European corporate bond funds outperformed their high yield and government bond peers. Only 54% of Corporate Bond (EUR) funds underperformed the iBoxx Euro Corporates. Meanwhile, 79% of High Yield Bond (EUR) funds underperformed the iBoxx Euro Liquid High Yield, while 81% of Government Bond (EUR) funds underperformed the iBoxx Euro Sovereigns in H1 2023.
- Corporate Bond (USD) funds performed worse than their EUR and GBP peers, with 81% underperforming the iBoxx USD Corporates.