Actively Managed Large-cap Mutual Funds Outperform S&P 500

Standard & Poor's recently announced that actively managed large-cap funds have outperformed the S&P 500 in 2005 with 55.8% of the funds outperforming the index. "In 2005, energy, utilities and real estate issues led market returns," says Rosanne Pane, Mutual Fund Strategist at Standard & Poor's. "Actively managed large-cap funds benefited from their overweight in those segments relative to the S&P 500. Active sector funds were helped by their ability to invest globally, including investments in emerging markets." Longer-term results continue to find indices outperforming a majority of active funds. Over the past three years, the S&P 500 has outperformed 69.4% of large-cap funds, the S&P MidCap 400 has outperformed 69.1% of mid-cap funds, and the S&P SmallCap 600 has outperformed 71.7% of small-cap funds. Read the full article here.

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(May '04-Jun '05)