News this past week:
- China’s economy grows at an annualised rate of 6.7% in Q3
- European bank shares rise following uneventful ECB meeting
- UK CPI jumps month-on-month
- US dollar strengthens as company earnings season commences
- Portugal’s sovereign bond rating avoids decisive downgrade
James Klemspter (CFA) of Momentum Global Investment Management shares his view:
Today’s FT refers to research published by index provider S&P Dow Jones that concludes “99 per cent of actively managed US equity funds sold in Europe have failed to beat the S&P 500 over the past 10 years”. While we know that active equity strategies come under fire from time to time for offering poor value for money for clients, this outcome seems to be particularly extreme. Surely, given a large enough sample, even a random choice of stocks would from time to time beat the index as long as the fee charged is not too great?