Capital Markets: Observations & Insights

​ Performance

Has Active Relative Performance Troughed?

• Factors that impact U.S. active relative performance often prove to be cyclical ‒ Interest rates/bond-like equities ‒ Small cap performance

‒ Overall market performance ‒ Non-U.S. stock performance

Active Relative Performance Is Cyclical

100%

80%

60%

40%

20% % of Fund Assets Outperforming

0%

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

2012

2015

2018

Source: Nomura/Instinet, Joseph Mezrich and FactSet through 3/31/19. Fund performance is trailing five-year data of U.S. active equity mutual funds in existence for five years or more and part of the growth, growth & income, and income categories based on CRSP codes.

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