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SPIVA® Europe Year-End 2022

SPIVA India Year-End 2022

SPIVA South Africa Year-End 2022

SPIVA Canada Year-End 2022

SPIVA® Australia Year-End 2022

SPIVA® Europe Year-End 2022

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Maya Beyhan

Senior Director, ESG Specialist, Index Investment Strategy

S&P Dow Jones Indices

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Davide Di Gioia

Director, Index Investment Strategy

S&P Dow Jones Indices

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Tim Edwards

Managing Director and Global Head of Index Investment Strategy

S&P Dow Jones Indices

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Anu R. Ganti

U.S. Head of Index Investment Strategy

S&P Dow Jones Indices

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Grace Stoddart

Quantitative Associate, Index Investment Strategy

S&P Dow Jones Indices

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.

For the first time, the 2022 edition of the SPIVA Europe Scorecard expands the universe of actively managed funds to include fixed income categories.

Year-End 2022 Highlights

It was a challenging year for active managers in European equities, with the Pan-European Equity category recording its highest annual underperformance rate since the SPIVA Europe Scorecard's inception in 2014. Fixed income managers had a better year in relative terms, with the majority outperforming in 5 of 11 categories over the one-year horizon. Across both asset classes, however, underperformance rates increased to a similarly high average over a 10-year horizon.

SPIVA Europe Year-End 2022 Exhibit 1: Distribution of Equity and Fixed Income Underperformance Rates across Categories

  • 83% of British pound sterling-denominated and 87% of euro-denominated actively managed Europe Equity funds underperformed the S&P Europe 350® in 2022, while 68% of Eurozone 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 December 2022, 98% of funds underperformed the S&P Global 1200®.
  • British pound sterling- and euro-denominated U.S. Equity funds performed similarly, with 67% underperforming in 2022 and 98% underperforming over a 10-year horizon.
  • 63% of Poland Equity funds lagged the S&P Poland BMI in 2022, the lowest underperformance rate among major single-country categories.
  • Among country categories, 89%, 84% and 75% of France, Italy and Spain Equity funds lagged their benchmarks, respectively, in 2022.
  • Actively managed U.K. Equity and U.K Large-/Mid-Cap Equity funds recorded underperformance rates of 92% and 97%, respectively, in 2022—the highest ever for these categories.
  • Meanwhile, only 67% of actively managed U.K. Small-Cap Equity funds underperformed the S&P United Kingdom SmallCap.
  • 77% of GBP-denominated High Yield Bond funds underperformed the iBoxx Sterling High Yield Index in 2022, the highest underperformance rate among our newly launched fixed income categories. Meanwhile, USD-denominated High Yield Bond funds performed relatively better, with 52% underperforming the iBoxx USD Liquid High Yield Index in 2022, although underperformance increased to 84% when measured over a 10-year period.
  • European corporate and government bond funds outperformed their high yield peers. Only 41% and 23% of euro-denominated Corporate Bond and Government Bond funds underperformed the iBoxx Euro Corporates and the iBoxx Euro Sovereigns, respectively. Meanwhile, 72% of Euro-denominated High Yield Bond funds underperformed the iBoxx Euro Liquid High Yield Index.
  • USD-denominated Corporate Bond funds performed worse than their EUR and GBP peers, with 63% underperforming the iBoxx USD Corporates.

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SPIVA India Year-End 2022

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Benedek Vörös

Director, Index Investment Strategy

S&P Dow Jones Indices

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Joseph Nelesen, Ph.D.

Head of Specialists, Index Investment Strategy

S&P Dow Jones Indices

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Davide Di Gioia

Director, Index Investment Strategy

S&P Dow Jones Indices

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Grace Stoddart

Quantitative Associate, Index Investment Strategy

S&P Dow Jones Indices

Summary

Since the first publication of the S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard in 2002, S&P Dow Jones Indices has been the de facto scorekeeper of the ongoing active versus passive debate. 

The SPIVA India Scorecard compares the performance of actively managed Indian equity and bond mutual funds with their respective benchmark indices over 1-, 3-, 5- and 10-year investment horizons.

Full-Year 2022 Highlights

In 2022, performance among Indian active managers varied across categories.  A majority of Indian Equity Large-Cap funds failed to beat their benchmark, with 88% of actively managed funds underperforming the S&P BSE 100.  Indian Composite Bond funds fared the best, with 45% underperforming the S&P BSE India Bond Index.

Exhibit 1: SPIVA India Year-End 2022

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SPIVA South Africa Year-End 2022

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Joseph Nelesen, Ph.D.

Head of Specialists, Index Investment Strategy

S&P Dow Jones Indices

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Maya Beyhan

Senior Director, ESG Specialist, Index Investment Strategy

S&P Dow Jones Indices

Contributor Image
Davide Di Gioia

Director, Index Investment Strategy

S&P Dow Jones Indices

S&P Dow Jones Indices has been the de facto scorekeeper of the ongoing active versus passive debate since the first publication of the S&P Indices Versus Active (SPIVA) U.S. Scorecard in 2002. 

The SPIVA South Africa Scorecard measures the performance of actively managed South African equity, global equity and fixed income funds denominated in South African rand (ZAR) against their respective benchmark indices over various time horizons.

Summary

Uncertainty plagued global markets in 2022, creating conditions that allowed some active managers to thrive and others to struggle.  Among active South African funds, 61% underperformed the large-cap benchmark, while 48% underperformed the broad market.  Underperformance rates were lower in the Short-Term Bond (10%) and Diversified/Aggregate Bond (24%) categories, while 69% of managers underperformed in the Global Equity category (see Exhibit 1 and Report 1).  Underperformance rates generally increased with measurement horizons, with a cross-category average of 67% of active funds underperforming over the past 10 years.

SPIVA South Africa: Exhibit 1

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SPIVA Canada Year-End 2022

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Anu R. Ganti

U.S. Head of Index Investment Strategy

S&P Dow Jones Indices

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Tim Edwards

Managing Director and Global Head of Index Investment Strategy

S&P Dow Jones Indices

Contributor Image
Joseph Nelesen, Ph.D.

Head of Specialists, Index Investment Strategy

S&P Dow Jones Indices

Contributor Image
Davide Di Gioia

Director, Index Investment Strategy

S&P Dow Jones Indices

Since the first publication of the S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard in 2002, S&P Dow Jones Indices has been the de facto scorekeeper of the ongoing active versus passive debate.

The SPIVA Canada Scorecard measures the performance of Canadian actively managed funds against their respective benchmarks over various time horizons, covering large-, mid- and small-cap segments, as well as international and global equity funds.

Year-End 2022 Highlights

2022 was a relatively less challenging year for most actively managed funds in Canada. A little over one-half of active funds underperformed their benchmarks in several categories, including Canadian Equity at 52%, Canadian Focused Equity at 63%, U.S. Equity at 58% and Global Equity at 54% (see Exhibit 1 and Report 1). Canadian Dividend & Income Equity funds posted the lowest one-year underperformance, with just 42% lagging the benchmark. Underperformance rates generally increased with time horizons.

SPIVA Canada Year-End 2022: Exhibit 1

  • Canadian Equity Funds: The S&P/TSX Composite Index fell 5.8% in 2022, while Canadian Equity funds dropped 5.8% and 5.5% on equal- and asset-weighted bases, respectively. Underperformance rates hit 52% for the one-year period, climbing to 84%, 93% and 85% over the 3-, 5- and 10-year horizons, respectively.
  • Canadian Focused Equity Funds: The blended benchmark of 50% S&P/TSX Composite Index + 25% S&P 500® + 25% S&P EPAC LargeMidCap fell 8.2% in 2022, outperforming 63% of Canadian Focused Equity funds. This rose to 71%, 92% and 96% over the 3-, 5- and 10-year horizons, respectively.
  • Canadian Dividend & Income Equity Funds: The S&P/TSX Canadian Dividend Aristocrats® Index fell 3.7% during 2022, while Canadian Dividend & Income Equity funds lost 4.4% and 3.7% on equal- and asset-weighted bases, respectively. Underperformance rates reached 42% over the one-year period, rising to 57%, 88% and 72% over the 3-, 5- and 10-year horizons, respectively.
  • Canadian Small-/Mid-Cap Equity Funds: The S&P/TSX Completion Index dipped 4.2% in 2022, and 90% of Canadian Equity Small-Mid-Cap funds underperformed the index. Funds in this category lost 11.5% and 11.4% on equal- and asset-weighted bases, respectively, over the one-year period.
  • U.S. Equity Funds: The S&P 500 shed 12.2% in 2022, and 58% of U.S. Equity funds underperformed the index. Few funds in the U.S. Equity category outperformed over the long term, with 94%, 96% and 98% underperforming over 3-, 5- and 10-year horizons, respectively.
  • International Equity Funds: 69% of International Equity funds trailed the S&P EPAC LargeMidCap, and 84% and 93% underperformed over the 5- and 10-year periods, respectively.
  • Global Equity Funds: The S&P Developed LargeMidCap fell 12.3% in 2022 and Global Equity funds sank 14.7% and 14.4% on equal- and asset-weighted bases, respectively. Over the one-year period, 54% of funds in the category trailed the benchmark.  Over the 3-, 5- and 10-year periods, 93%, 94% and 97% of funds underperformed, respectively.
  • Fund Survivorship: Liquidation rates for all categories were in single digits for the one-year period ending Dec. 30, 2022. Over the 10-year period, 45% of Canadian Equity funds merged or liquidated and 37% of funds disappeared across all categories (see Report 2).

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SPIVA® Australia Year-End 2022

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Benedek Vörös

Director, Index Investment Strategy

S&P Dow Jones Indices

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Tim Edwards

Managing Director and Global Head of Index Investment Strategy

S&P Dow Jones Indices

Contributor Image
Davide Di Gioia

Director, Index Investment Strategy

S&P Dow Jones Indices

The SPIVA Australia Scorecard measures the performance of actively managed Australian funds against their respective benchmarks over various time horizons, covering large-, mid- and small-cap equity funds, real estate funds and bond funds, and providing statistics on outperformance rates, survivorship rates and fund performance dispersion.

Year-End 2022 Highlights

After a promising start in relative terms, actively managed Australian Equity General funds found it harder to stay ahead of the market in the second half of the year, resulting in a full-year underperformance rate of 58% compared with the S&P/ASX 200.  Meanwhile, there were better odds of finding an outperforming active manager in the A-REIT category, while, after several years of generally better performance, roughly three-quarters of funds in the mid- and small-cap equity category lagged in 2022.

SPIVA Australia: Exhibit 1

  • Australian Equity General Funds: Having dropped 9.9% in the first six months of the year, the S&P/ASX 200 rose 9.8% in H2 2022 to close the year down 1%. After a relatively good start to the year, Australian Equity General funds endured a challenging second half, with 78.5% of managers underperforming the benchmark, bringing the full year underperformance rate to 57.6%.  Over the longer term, underperformance rates were even higher, with 81.2%, 78.2% and 83.6% of funds underperforming the S&P/ASX 200 over the 5-, 10- and 15-year horizons, respectively.
  • Australian Equity Mid- and Small-Cap Funds: The S&P/ASX Mid-Small rallied 10.1% in the second half of 2022 to close the year down 12.2%. Just 23.4% of Australian Equity Mid- and Small-Cap funds beat the index in 2022, while over 80% underperformed on a risk-adjusted basis.  Funds in this category lost 19.8% and 22.0% on equal- and asset-weighted bases, respectively, for the same period.  The longer-term record within the small- and mid-cap category was relatively stronger, with just 54.7% underperforming over the 15-year period.
  • International Equity General Funds: International equity funds posted -13.9% and -13.2% on equal- and asset-weighted bases in 2022, with 56.3% of funds failing to keep up with the S&P Developed Ex-Australia LargeMidCap in 2022. Over the 5- and 10-year periods, more than 86% and 95% of funds underperformed, respectively.
  • Australian Bond Funds: The S&P/ASX Australian Fixed Interest 0+ Index slumped 10.1% in 2022, with 69.2% of funds in the Australian Bonds category underperforming the benchmark. Active funds had a similar record over the longer term: 66.1% and 79.3% underperformed over 5- and 10-year periods, respectively.
  • Australian Equity A-REIT Funds: Active managers in the Australian Equity A-REIT category posted their lowest underperformance rate since the launch of the SPIVA Australia Scorecard in 2013, with just 41.2% of funds underperforming the benchmark. Active managers’ outperformance came in one of the toughest years for the segment in recent memory: the S&P/ASX 200 A-REIT dropped 20%, its worst annual performance since 2008.  Underperformance rates rose over longer time frames, reaching 79.1% over the 15-year horizon.
  • Fund Survivorship: Liquidation rates for most active fund categories were moderate over the one-year period ending Dec. 30, 2022. Australian Equity General funds recorded the highest liquidation rate, at 7.4%.  In contrast, only 2.0% of Australian Equity A-REIT funds failed to survive.  Over the longer term, survivorship rates were significantly lower, with over 50% of funds merged or liquidated over a 15-year horizon in all but one reported category (see Report 2).

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