Half of UK actively managed funds underperformed in 2014 says S&P Dow Jones Indices

29th April 2015

More than half of UK actively managed funds underperformed in 2014 according to a new report from  S&P Dow Jones Indices. The new report called the Europe S&P Indices Versus Active Funds Scorecard tracks the performance of actively managed funds against their relevant S&P benchmarks.

Fifty five per cent of actively managed, sterling denominated funds invested in the UK equity market underperformed the S&P UK BMI in 2014. S&P says this is in stark contrast to 2013’s results where only 11% underperformed.

However, UK large- and mid-cap funds posted higher returns than their benchmarks with only 42% underperforming. UK small-cap funds had a bad year with 72% trailing the benchmark.

Actively managed sterling denominated funds invested in European equities did better than their euro currency counterparts, with only 39% of the former underperforming the S&P Europe 350 compared to 83% of the euro currency versions underperforming the benchmark.

The majority of actively managed US, Global and Emerging Market equity funds denominated in sterling also trailed their benchmarks.

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