Again, looking further afield:
In summary, these findings reinforce our two main contentions: we continue to believe that the best active managers can add value, but (i) picking the managers who will outperform is notoriously difficult, and (ii) that consistency of fund outperformance after fees and costs is rare.
Do active funds really outperform passive funds in a downturn? The figures on average say no – and good luck sniffing out one that does.
Please remember that when investing your capital is at risk.
1 Source: For all quoted statistics, we have used Morningstar fund data with Netwealth analysis. For each fund, the cheapest available non-institutional share class has been used. Funds which were closed or merged during the period in question were included in the analysis, and relative performance to the point of closure considered.
2 We used a consistent time-frame for this analysis of different regions. Strictly speaking, the bear market in Emerging Markets during the Global Financial Crisis was from June 2007 to November 2008 in sterling terms. Over this period the outcome was much the same, with 57% of Emerging Markets managers under-performing the tracker.