Index Provider Releases Latest SPIVA Scorecard for Canada
TORONTO, June 9 /CNW/ - Standard & Poor's, the world's leading index provider, announced today that the latest results of its Standard & Poor's Index Versus Active Fund Scorecard for Canada ("SPIVA") show that only 40% of active mutual funds in the Canadian Equity category were able to outperform the S&P/TSX Composite Index during the first quarter of 2010. Similar results were seen in the Canadian Small/Mid Cap Equity category of mutual funds when compared against the performance of the S&P/TSX Completion Index.
SPIVA Canada reports on the performance of actively managed Canadian mutual funds versus their relative Standard & Poor's benchmark. A key advantage of the SPIVA report is its correction for survivorship bias, which can skew results as funds merge or liquidate.
In the first quarter of 2010, actively managed funds in the Canadian Equity category underperformed the S&P/TSX Composite Index when examining both equal- and asset-weighted returns. However, active funds fared better across some of the other fund categories. On both an equal- and asset-weighted basis, active funds outperformed their benchmarks in the categories of U.S. Equity and Canadian Focused Equity. For the Canadian Focused Equity category 58% of active funds outpaced the blended index (comprised of 50% S&P/TSX Composite + 25% S&P 500 + 25% S&P EPAC BMI LargeMidCap).
Over longer periods of time, Standard & Poor's continues to observe indices outperforming the majority of domestic funds. In the three- and five-year periods ending Q1 2010, only 10.9% and 3.3% of actively managed Canadian Equity funds have outperformed the S&P/TSX Composite Index.
Looking at the performance of actively managed foreign equity funds, over the last five years, only 9.8% of active funds in the International Equity category, 11.3% in the Global Equity category and 9.7% in the U.S. Equity category have outpaced the S&P EPAC BMI LargeMidCap, S&P Developed BMI LargeMidCap and S&P 500 indices respectively.
All SPIVA reports can be accessed in their entirety by going to: www.spiva.standardandpoors.com.
About S&P Indices
S&P Indices, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P Global 1200, a composite index comprised of seven regional and country headline indices, the S&P Global BMI, an index with approximately 11,000 constituents, and the S&P GSCI, the industry's most closely watched commodities index. For more information, please visit www.standardandpoors.com/indices.
About Standard & Poor's
Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com
SOURCE Standard & Poor's Canadian Index Operations
For further information: For further information: David Guarino, Communications, Standard & Poor's, New York, (212) 438-1471, firstname.lastname@example.org