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How did Canadian active managers do last year? The S&P Indices Versus Active Funds (SPIVA) Scorecard, which tracks the performance of actively managed funds against their relevant S&P benchmarks, suggests most managers continue to lag the index.

Read: Is it getting harder to find alpha?

Data as of December 31, 2014 reveal:

DOMESTIC EQUITY

  • During the past 12 months, 26.47% of active Canadian Equity Funds outperformed the S&P/TSX Composite and 39.13% of actively managed funds in the Canadian Small/Mid-Cap Equity category outperformed the S&P/TSX Completion.
  • As dividends and income themes continue to dominate the investment landscape, only 6.67% of actively managed funds in the Canadian Dividend & Income category outperformed the S&P/TSX Canadian Dividend Aristocrats over a one year period. None of the active funds were able to outperform the S&P/TSX Canadian Dividend Aristocrats over the five-year horizon.

Read: Client dumps advisor over closet indexing

FOREIGN EQUITY

  • 11.1% of active of U.S. Equity Funds outpaced the S&P 500 on a one-year basis. The results are worse on a 3- and 5-year basis with only 3.13% and 2.9% outperforming, respectively.
  • 30% of international equity managers beat the S&P EPAC LargeMidCap and 5.95% of global equity managers beat their benchmark, the S&P Developed LargeMidCap over a one year period.

Read: Inefficient markets leave room for active management

Originally published on Advisor.ca

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