Summary
The SPIVA Latin America Scorecard measures the performance of actively managed funds across Brazil, Chile and Mexico against their respective benchmarks over various time horizons, providing statistics on underperformance rates, survivorship rates and fund performance dispersion.
Year-End Highlights
Latin American benchmarks surged in 2025, and underperformance rates varied among active managers across categories. Active large-cap equity funds in Brazil fared better than most, with less than one-half of funds underperforming their benchmark. In all other categories, at least one-half of active funds underperformed in 2025. All categories underperformed over a 10-year horizon (see Exhibit 1).
Mexico
- 2025 was a strong year for Mexican equities, with the S&P/BMV IRT rising 35.2% during the 2025 calendar year. Around three in four active Mexico Equity fund managers (75.6%) underperformed for the one-year horizon. Over longer periods, outperformance remained challenging, with 69.8%, 77.3% and 75.6% of managers underperforming the benchmark over 3-, 5- and 10-year periods, respectively (see Report 1a).
- The median active fund underperformed the benchmark by 3.0% in 2025, a trend that persisted over time, with median funds underperforming by 1.6%, 2.0% and 3.1% for the
3-, 5- and 10-year periods, respectively (see Reports 3 and 5). Over the 10-year period, top-quartile managers outperformed the benchmark by 0.3%. - Once again, the survival rates of active funds in Mexico remained the highest in Latin America, at 100.0%, 100.0%, 97.7% and 85.4% over the 1-, 3-, 5- and 10-year periods, respectively (see Report 2).
- Smaller funds performed significantly better than larger funds in 2025. Average returns for Mexico Equity funds were 7.1% higher on an equal-weighted basis than on an asset-weighted basis (see Reports 3 and 4).
Brazil
- Brazil’s equity market rebounded in 2025, with the S&P Brazil BMI rising 32.2% after declining in 2024 (see Report 3). Large caps, as measured by the S&P Brazil LargeCap, rose 31.7%, while mid- and small-cap companies, as measured by the S&P Brazil MidSmallCap, finished the year up 34.2%.
- In 2025, 58.0% of active Brazil Mid-/Small-Cap funds and 50.0% of Brazil Equity funds underperformed their benchmarks. It was a different story for funds holding larger stocks: slightly more than one-third (35.6%) of active Brazil Large-Cap funds underperformed their benchmarks.
- Active managers across all equity categories underperformed their respective benchmarks over the longer 10-year period ending in 2025, with underperformance rates of 90.8%, 80.5% and 84.9% in the Brazil Equity, Brazil Large-Cap and Brazil Mid-/Small-Cap fund categories, respectively (see Report 1a).
Chile
- In 2025, Chile’s equity market had an extraordinary year, with the S&P Chile BMI increasing 56.6% (see Report 3).
- A little over one-half of active Chile Equity fund managers (53.5%) underperformed the S&P Chile BMI over the one-year horizon. The underperformance rate increased over longer horizons, reaching 60.0% and 90.9% over 5- and 10-year periods, respectively (see Report 1a). Median funds outperformed the benchmark by 2.0% in 2025 but trailed by 1.6% over the longer 10-year period (see Report 5).
- Over the one-year period, smaller funds outperformed larger funds by 8.5%, with active Chile Equity funds increasing by 63.1% on an equal-weighted basis compared to 54.7% on an asset-weighted basis. Over the 10-year period ending in 2025, however, the performances converged, with equal-weighted and asset-weighted returns averaging 11.3% and 11.1%, respectively (see Reports 3 and 4).
- Over the 10-year period, top-quartile active fund managers beat the benchmark by 0.8% (see Reports 3 and 5).
Fixed Income
- Fixed income funds fared relatively poorly in 2025, with one-year underperformance rates of 83.3% and 87.4% for Brazil Corporate Bond and Brazil Government Bond funds, respectively. Over the 10-year period, underperformance rates reached 91.4% and 76.3% for Brazil Government Bond funds and Brazil Corporate Bond funds, respectively.
Market Context
While global equities were generally on the rise in 2025, Latin America stood among the highest performing regions, with the S&P Latin America BMI rising 54.0% for the year and surpassing the S&P World Index benchmark by 31.8% in U.S. dollar terms (see Exhibit 2).
