Lyxor Manager Monitor Q1 2018…<\/p>\n
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By Marl\u00e8ne Hassine Konqui, Head of ETF Research and Kristo Durbaku, ETF Research Analyst<\/strong><\/p>\n Highlights<\/strong><\/p>\n 39% of active managers outperformed their benchmark in Q1 2018 \u2013 a slight drop from last year\u2019s 44%. 42% of equity managers outperformed vs. the 47% we saw in 2017, while 32% of fixed income active managers outperformed (vs. 39% in 2017). Long-term results still suggest only 1 in 4 active managers outperforms over 10 years.<\/p>\n Over the quarter, equity managers failed to come to terms with the more volatile environment and increasing correlations. The main weaknesses were found in biggest, more efficient markets like the World, Japan, US and Eurozone. Interestingly, performance also tailed off in some less efficient markets like US and European small-caps and Italy. In contrast, we saw the biggest improvement in the UK all-cap universe where 75% outperformed in Q1 2018 (see our special focus on p5).<\/p>\n 32% of fixed income active managers outperformed their benchmark in Q1 2018 vs. the 39% we saw last year. Credit managers were again largely to blame, with only 18% of euro and 19% of US corporate bond managers outperforming. Global bond managers again enjoyed the best results with 74% of them finishing ahead vs. the 67% that beat the benchmark in 2017. Euro inflation-linked bonds are the only area of real improvement – with 29% outdoing their index vs. 9% in 2017.<\/p>\n Overall, European domiciled active fund flows declined by 46% in Q1. This is mainly explained by a decline of 82% for fixed income funds to \u20ac10.7bn, which could in part be explained by the very poor results we\u2019ve seen. In contrast, we saw a significant increase in passive equities flows. On the active side, equities flows have continued to increase (from \u20ac23bn in Q4 2017 to \u20ac33bn in Q1 2018) despite the declining results.<\/p>\n Blending active and passive management in Q1 <\/strong><\/p>\n In fixed income, the less favorable credit spread environment caused issues \u2013 most obviously among investment-grade credit where passive clearly won out <\/p>\n When it comes to equities, US, emerging markets, World and Japan managers clearly struggled. Favoring passive products in these areas may have made more sense<\/p>\n However, in the European universe more than half of active managers outperformed, mainly driven by the good performance of UK managers. Selecting the best managers in this area would have been positive for portfolio construction<\/p>\n Source: Morningstar and Bloomberg data from 31\/12\/2007 to 29\/03\/2018. <\/p>\n<\/p>\n Source: ETFWorld<\/p>\n","protected":false},"excerpt":{"rendered":" Lyxor Manager Monitor Q1 2018…<\/p>\n","protected":false},"author":1,"featured_media":18267,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[12],"tags":[163],"class_list":["post-16081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-etf-analysis","tag-lyxor-asset-management"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/16081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/comments?post=16081"}],"version-history":[{"count":0,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/16081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media\/18267"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media?parent=16081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/categories?post=16081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/tags?post=16081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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