Financial Times FT.com

Proof that indices do better than managers

By Sophia Grene

Published: November 16 2008 17:27 | Last updated: November 16 2008 17:27

Active managers struggle to outperform their benchmarks over any extended period of time, according to new evidence.

Standard & Poor’s Index Services has relaunched its Spiva scorecard, which compares the performance of US mutual funds and benchmark indices. Using data corrected for survivorship bias, the scorecard shows the benchmarks outperformed the managers in at least 70 per cent of cases in almost all categories.

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