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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