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More than two-thirds of actively managed European stock market funds underperformed their benchmarks in the first half of the year, according to data released Tuesday.
The S&P Indices Versus Active Funds, or SPIVA, scorecard found 71% of euro-denominated European equity funds underperformed their benchmark, up considerably from the 42% that underperformed in the first half of 2020. “These figures could support the notion that active managers may perform relatively better in uncertain times,” said analysts led by Andrew Cairns.
The underperformance was particularly stark in France, where 85% underperformed the benchmark. According to S&P, 65% of euro-denominated U.S. funds underperformed in the first half.
Over a decade, 85% of European funds and 95% of U.S. funds underperform their benchmarks, according to the S&P data.
European stocks drifted lower Tuesday on investor caution ahead of third-quarter earnings, with the Stoxx Europe 600
SXXP,
easing 0.1% to 456.96.
The German ZEW poll of economic sentiment fell in October for the fifth month to the lowest since March 2020.
Stora Enso
STERV,
and UPM-Kymmene
UPM,
each fell 4% after the European Commission announced an antitrust investigation into the wood pulp industry.
