Actively managed growth funds convincingly beat their corresponding Standard & Poor’s indices during the first quarter of 2006, while value-oriented funds generally lagged their benchmarks, according to data released today by Standard & Poor’s.
The Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA) report showed that the S&P 500/Citigroup Growth Index managed to outperform only 29.9% of actively managed large-cap growth funds for the quarter. Moreover, the S&P MidCap 400/Citigroup Growth Index and the S&P SmallCap 600/Citigroup Growth Index beat 21.9% and 31.2% of actively managed mid-cap and small-cap growth funds, respectively.
By comparison, the S&P 500/Citigroup Value index beat 80.3% of actively managed large-cap value funds. Similarly, the S&P MidCap 400/Citigroup Value Index and the S&P SmallCap 600/Citigroup Value Index beat 87.5% and 88.8% of actively managed mid-cap and small-cap value funds, respectively.
Overall, actively managed mutual funds outperformed their relative Standard & Poor’s benchmark indices in five of 11 general equity categories. One category ended the first quarter in a tie, while active funds trailed their indices in the remaining five categories.
Specifically, the SPIVA Scorecard showed that the S&P MidCap 400 index outperformed 51.5% of mid-cap funds during the first quarter, while the S&P SmallCap 600 index outperformed 64.2% of small-cap funds. Actively managed funds fared better in the large-cap category, with 52.3% of them outperforming the S&P 500 index.