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More than half of active managers beat benchmarks in June
23 July 2020
A deep dive into how and which actively managed strategies fared against market benchmarks in June – highlighting how many managers in each universe are beating their benchmarks and the degree to which they are outperforming. June’s performance analysis uses over 9,000 equity and fixed income products from eVestment Analytics that have qualified for inclusion.

June was a solid month for active managers, with 56% of strategies outperforming our chosen benchmarks. Out of 145 total universes, 54% of them saw more than half of their constituent managers beat the benchmark during the month.

We saw a number of interesting trends in the equity space. Firstly, core style managers simply fared poorly against their benchmarks during the month with only 39% of strategies outperforming, compared to 45% for growth managers and 62% for value managers.

Outperformers' Average Returns vs. Universe-Selected Benchmarks

Secondly, value managers were more likely to outperform their benchmarks than growth managers in U.S. and global, all cap and large cap universes. Given the U.S. equity market performance in June, we find the result intuitive. Value managers in these universes were able to bolster their returns against their style benchmarks with exposure to high flying U.S. large and mid cap growth names.

Conversely, growth managers in these universes did not have any place to “hide” and could only outperform by owning the right mix of growth companies; a difficult feat in the environment we’ve been in since late March. Across ex-U.S. developed markets strategies, we generally saw more growth managers outperforming than benchmarks than value managers.

Top Equity Universes: June 2020

Source: eVestment Analytics
Top equity universes by percentage of products outperforming selected benchmark. Performance in USD gross.

eVestment Primary Universe% Outperforming BenchmarkOutperformers Avg. Return vs. BenchmarkAverage Return vs. BenchmarkUnderperformers Avg. Return vs. BenchmarkSelected Universe BenchmarkBenchmark Return
Japan All Cap Growth Equity96%1.89%1.78%-0.66%TOPIX-0.33%
Australian Equity Shares - Small Cap96%2.97%2.73%-2.38%S&P/ASX Small Ordinaries1.70%
Global All Cap Value Equity93%1.97%1.81%-0.42%MSCI World Value0.77%
Master Limited Partnership (MLP)91%2.63%2.31%-0.73%Alerian MLP-7.87%
Latin America Equity89%2.45%2.17%-0.13%MSCI EM Latin America5.26%
Global Large Cap Value Equity88%1.85%1.56%-0.73%MSCI World Large Cap Value0.53%
US All Cap Value Equity86%1.84%1.46%-0.95%Russell 3000 Value-0.46%
US Large Cap Value Equity83%1.54%1.19%-0.56%Russell 1000 Value-0.66%
Eurozone Large Cap Equity81%0.92%0.22%-2.73%MSCI EMU6.00%
Frontier Mkts Equity78%2.18%1.42%-1.32%MSCI Frontier Markets1.69%

Top Fixed Income Universes: June 2020

Source: eVestment Analytics
Top fixed income universes by percentage of products outperforming selected benchmark. Performance in USD gross.

eVestment Primary Universe% Outperforming BenchmarkOutperformers Avg. Return vs. BenchmarkAverage Return vs. BenchmarkUnderperformers Avg. Return vs. BenchmarkSelected Universe BenchmarkBenchmark Return
Multi-Asset Credit Fixed Income100%1.39%1.39%N/ABloomberg Barclays Multiverse0.95%
Japan Core Fixed Income100%0.16%0.16%N/ANOMURA Bond Performance-0.54%
Asia Fixed Income - Hard Currency100%1.30%1.30%N/AICE BofAML Asia Dollar Investment Grade1.42%
US Core Plus Fixed Income99%0.80%0.79%-0.42%Bloomberg Barclays US Aggregate0.63%
Canadian Short Duration Fixed Income96%0.57%0.48%-1.77%Bloomberg Barclays Canadian Aggregate 1-3 Years1.77%
Canadian Core Plus Fixed Income94%0.60%0.55%-0.25%Bloomberg Barclays Canadian Aggregate3.10%
Global Multi-Sector Fixed Income93%1.17%1.07%-0.28%Bloomberg Barclays Multiverse0.95%
US Core Fixed Income92%0.55%0.49%-0.19%Bloomberg Barclays US Aggregate0.63%
Canadian Long Duration Fixed Income91%0.75%0.57%-1.27%Bloomberg Barclays Canadian Aggregate 10+ Years4.80%
US Securitized Fixed Income - Mortgage89%0.64%0.56%-0.08%Bloomberg Barclays US Mortgage Backed Securities-0.09%

Within the fixed income space, we continued to see the majority of active managers outperform their benchmarks. Credit-oriented managers generally had a tougher time beating their benchmarks, as did short and intermediate duration muni bond managers. Less than half of the strategies in the U.S., Europe, and global high yield and U.S. bank loan universes were able to beat their benchmarks. Similarly, only 45% of short and intermediate duration muni bond managers were able to outperform their benchmarks in June.

We further showcase the performance of some of the largest regional universes by assets under management below.

Top Equity Universes by Q1 2020 Institutional AUM

Source: eVestment Analytics
Performance in USD gross.

RegioneVestment Primary Universe% Outperforming BenchmarkOutperformers Avg. Return vs. BenchmarkAverage Return vs. BenchmarkUnderperformers Avg. Return vs. BenchmarkSelected Universe BenchmarkBenchmark Return
U.S.US Large Cap Growth Equity33%1.21%-0.69%-1.65%Russell 1000 Growth4.35%
U.S.US Large Cap Value Equity83%1.54%1.19%-0.56%Russell 1000 Value-0.66%
U.S.US Large Cap Core Equity40%0.80%-0.40%-1.19%S&P 5001.99%
U.S.US All Cap Core Equity27%1.27%-0.57%-1.24%Russell 30002.29%
U.S.US Small Cap Growth Equity52%2.07%0.49%-1.22%Russell 2000 Growth3.84%
GlobalGlobal Large Cap Core Equity41%1.05%-0.36%-1.33%MSCI World Large Cap2.76%
GlobalGlobal All Cap Core Equity46%0.97%-0.10%-1.02%MSCI World2.69%
GlobalGlobal Emerging Mkts All Cap Core Equity49%1.50%-0.02%-1.50%MSCI EM7.40%
GlobalGlobal All Cap Growth Equity42%2.41%0.03%-1.67%MSCI World Growth4.54%
GlobalACWI ex-US All Cap Growth Equity72%1.77%0.86%-1.53%MSCI ACWI ex-US Growth5.10%
EMEAPan-Europe All Cap Core Equity41%0.67%-0.28%-0.93%MSCI Europe4.11%
EMEAPan-Europe Large Cap Core Equity40%0.71%-0.36%-1.07%MSCI Europe Large Cap4.34%
EMEAPan-Europe Large Cap Growth Equity63%1.23%0.37%-1.06%MSCI Europe Large Cap Growth3.07%
EMEAPan-Europe Small Cap Equity53%1.04%0.06%-1.04%MSCI Europe Small Cap2.36%
EMEAUK All Cap Value Equity39%1.49%-0.02%-0.98%FTSE All Share1.48%
APACJapan All Cap Core Equity60%1.27%0.36%-1.02%TOPIX-0.33%
APACAustralian Equity Shares - Long Only39%0.69%-0.36%-1.04%S&P/ASX 3006.24%
APACJapan All Cap Growth Equity96%1.89%1.78%-0.66%TOPIX-0.33%
APACJapan All Cap Value Equity27%1.13%-0.54%-1.17%TOPIX-0.33%
APACPacific Basin Equity41%1.66%-0.88%-2.62%MSCI AC Asia Pacific5.18%

Top Fixed Income Universes by Q1 2020 Institutional AUM

Source: eVestment Analytics
Performance in USD gross.

RegioneVestment Primary Universe% Outperforming BenchmarkOutperformers Avg. Return vs. BenchmarkAverage Return vs. BenchmarkUnderperformers Avg. Return vs. BenchmarkSelected Universe BenchmarkBenchmark Return
U.S.US Core Fixed Income92%0.55%0.49%-0.19%Bloomberg Barclays US Aggregate0.63%
U.S.US Long Duration Fixed Income80%0.88%0.54%-0.81%Bloomberg Barclays US Long Govt/Credit1.55%
U.S.US Corporate Fixed Income82%0.53%0.34%-0.52%Bloomberg Barclays US Credit1.83%
U.S.US Core Plus Fixed Income99%0.80%0.79%-0.42%Bloomberg Barclays US Aggregate0.63%
U.S.US Short Duration Fixed Income82%0.56%0.44%-0.09%Bloomberg Barclays US 1-3 Yr Govt/Credit0.20%
GlobalGlobal Aggregate Fixed Income76%1.01%0.68%-0.34%Bloomberg Barclays Global Aggregate0.89%
GlobalGlobal Multi-Sector Fixed Income93%1.17%1.07%-0.28%Bloomberg Barclays Multiverse0.95%
GlobalGlobal Unconstrained Fixed Income72%1.13%0.64%-0.60%Bloomberg Barclays Multiverse0.95%
GlobalGlobal Emerging Mkts Fixed Income - Hard Currency56%0.75%0.12%-0.70%JPM EMBI Global Diversified3.51%
GlobalGlobal Credit Fixed Income67%0.73%0.33%-0.50%Bloomberg Barclays Global Aggregate - Credit1.91%

Universe Sample Notes:
The eVestment universes chosen this month must have had at least 15 products reporting gross returns in the most recent month (MRM) based on data pulled on 7/20/2020. Universes with between 15 and 20 products reporting must have more than half of the products that reported returns in MRM versus the universe’s prior 12 month reporting average of active products. Universes with more than 20 products reporting must have ~40% or more products that have reported returns in MRM versus the prior 12 months. Certain universes were excluded due to lack of a singular benchmark fit (e.g.: sector focused equity) or because they did not fit the theme of the analysis (e.g.: cash management and passives).

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