Mutual Funds Performance for 2015

S&P

The results are in according to the S&P Spiva Canada Scorecard. Here we go:

“Over the five-year period ending Dec. 31, 2015,, nearly 34.25% of actively managed funds in the Canadian Equity Funds outperformed the S&P/TSX Composite.

Over the same five-year period, only 6.98% of active international equity funds were able to beat the benchmark.

Only 5.59% of active global equity funds and 1.07% of active U.S. equity funds outpaced the S&P Developed Large Mid Cap and the S&P 500, respectively.”

So the 5 year Canadian numbers are better than usual, but still, 65.75% of funds did worse than the index. I ignore any numbers less than 5 years. Any one can get lucky for a year or two. Look long term, that’s the only way to invest. I’d love to see 10 year, 15 year, 20 year numbers. The longer the number of years, the fewer the number of funds who beat the index.

Fund managers can’t risk a few bad quarters to invest in out of favour stocks that may outperform in the long run. They’ll be out of a job long before those stocks start to shine again.

When it comes to US and international, forget about it. Pathetic performance. Only 1% of funds beat the S&P 500!

But they sound so sure of themselves when they’re on television. They can quote numbers until the cows come home. They tell you about their meetings with management, what happened in 1998 and 2006, the patterns their computer models show and how they got it so right with this or that company. Do they believe this stuff will actually improve performance or are they just thinking about their next boat payment?

Here is the report, if you’re interested in finding out more.

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