Index Versus Active Funds Scorecard For Canadian Funds - Standard & Poor's Indices Versus Active Funds Scorecard, Second Quarter 2005

The S&P Indices Versus Active Funds (SPIVA) Scorecard reports performance of actively managed Canadian mutual funds corrected for survivorship bias and shows equal- and asset-weighted peer averages.
Actively managed Canadian Equity funds and US Equity funds have lagged indices in the first half of 2005. The S&P/TSX Composite Index outperformed 80.4% of Canadian Equity funds, while the S&P 500 Index outperformed 67.7% of US Equity funds. In contrast, 67.5% of SmallCap Equity funds have outperformed the S&P/TSX SmallCap Index.
Over longer time periods, we continue to observe indices outperforming a majority of active funds. Over the past five years, 42.5% of actively managed Canadian Equity funds have outperformed the S&P/TSX Composite Index, 30.6% of actively managed Canadian SmallCap funds have outperformed the S&P/TSX SmallCap Index and 21.5% of U.S. Equity funds have outperformed the S&P 500 Index.
Over the last three years, 5.9% of actively managed Canadian Equity funds have outperformed the S&P/TSX Composite Index, 54% of actively managed Canadian SmallCap funds have outperformed the S&P/TSX SmallCap Index and 19.6% of U.S. Equity funds have outperformed the S&P 500 Index.
Five-year average fund returns show active funds outperforming the S&P/TSX Composite Index and underperforming the S&P/TSX Capped Composite, both on an equal and asset weighted basis.
Over the last year, 18.2% of actively managed Canadian Equity funds have outperformed the S&P/TSX Composite Index and 26.6% of U.S. Equity funds have outperformed the S&P 500 Index. However actively managed Canadian SmallCap funds have fared better, with 65.9% beating the S&P/TSX SmallCap Index.
Five-year survivorship ranges from 72% to 79% for the Canadian Equity, Canadian SmallCap and U.S. Equity fund categories. This suggests than roughly one in four funds in these three categories has merged or liquidated in the past five years. Three-year survivorship is between 92% and 95%.

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