Our SPIVA Global Scorecard highlighted the challenging market conditions for active equity managers around the world in the first half of 2024. The Middle East bucked the trend as active equity funds built on their 2023 domestic record with another set of strong beat rates in three out of four categories.
In the Middle East, equity markets finished the first half of 2024 in negative territory, standing in stark contrast to 2023 when all benchmarks posted positive total returns between 8%-16%. The S&P Pan Arab Composite LargeMidCap Index and the S&P Pan Arab Composite performed similarly, shedding 3.1% and 1.8%, respectively. Actively managed MENA Equity funds held up better, on average, with a median return of 0.1%. Saudi Arabia Equity funds did even better, with even bottom quartile funds beating the S&P Saudi Arabia by 8.4%.
The only category in which a slim majority of actively managed funds underperformed the relevant benchmark was GCC Equity, where 52.4% of funds underperformed the S&P GCC Composite.
Over the 10-year horizon, the majority of actively managed funds underperformed across all categories, with the percentage of underperforming funds ranging from 55% in the Saudi Arabia Equity category to 88% for MENA Equity funds.
