S&P Releases Midyear 2009 Index Versus Active Fund Scorecard for Canada

    Active Canadian Equity funds underperform S&P/TSX Composite

    TORONTO, Sept. 2 /CNW/ - Standard & Poor's, the world's leading index
provider, announced today the latest results for the Standard & Poor's Indices
Versus Active Funds Scorecard (SPIVA) for Canada. For the first half of 2009,
only 34.5% of Canadian Equity active funds outperformed the S&P/TSX Composite
Index. However, 62.0% of active funds in the Small/Mid Cap Equity category
beat the S&P/TSX Completion Index. Similarly, in the Canadian Focused Equity
category 71.4% of active funds outperformed the blended benchmark of 50%
S&P/TSX Composite + 25% S&P 500 + 25% S&P EPAC LargeMidCap Index.
    "The results for Midyear 2009 continue to echo past results. Over shorter
time periods we see active funds adding value but over longer time periods
active fund outperformance is a rare observance," says Jasmit Bhandal,
director at Standard & Poor's. "Investors face the hurdle of finding this
extraordinary fund, and then have to hope that it will continue to repeat this
    SPIVA reports on the performance of actively managed Canadian mutual
funds corrected for survivorship bias, and shows equal- and asset-weighted
peer averages
    SPIVA results for midyear 2009 showed that the majority of active mutual
funds investing outside of Canada were able to outperform their benchmarks.
62.3% of active U.S. Equity funds outperformed the S&P 500, 63.0% of
International Equity funds outperformed the S&P EPAC LargeMidCap Index and
69.3% of Global Equity funds outperformed the S&P Developed LargeMidCap Index.
    The majority of active funds underperformed their respective Standard &
Poor's benchmark over longer time periods. Only 16.7% and 7.6% of active
Canadian Equity funds were able to outperform the S&P/TSX Composite Index over
the three and five-year periods. Over the one year time period, active
Canadian Equity funds fared better with 54.6% outpacing the S&P/TSX Composite
Index. For active funds in the U.S. Equity category, 27.1%, 19.6% and 10.6% of
funds outpaced the S&P 500 over the one, three- and five-year periods


    SPIVA reports also include a survivorship bias correction to account for
funds that may have merged or been liquidated during the period under study.
Survivorship over the past five-years is 43.8% for Canadian Equity, 39.8% for
U.S. Equity, 58.1% for International Equity, and 41.3% for Global Equity. In
other words, a significant percentage of the funds in these four categories
has been merged or liquidated over the past five years.

    About SPIVA

    The SPIVA methodology is designed to provide an accurate and objective
apples-to-apples comparison of funds' performance versus their appropriate
style indices, correcting for factors that have skewed results in previous
index-versus-active analyses in the industry. SPIVA scorecards show both
asset- and equal-weighted averages and include survivorship bias correction to
account for funds that may have merged or been liquidated during the period
under study. Fund categorizations are as defined by the Canadian Investment
Funds Standards Committee (CIFSC), and fund data is drawn from Fundata's
mutual fund database.
    The complete Midyear 2009 SPIVA scorecard for Canada is available on
HYPERLINK "http://www.spiva.standardandpoors.com"

    About Standard & Poor's Index Services

    Standard & Poor's Index Services, 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

    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 nearly 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

For further information:

For further information: Jasmit Bhandal, Standard & Poor's, (416)
507-3203, jasmit_bhandal@standardandpoors.com; David R. Guarino, Standard &
Poor's, (212) 438-1471, dave_guarino@standardandpoors.com,

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