SPIVA® Institutional Scorecard: How Much Do Fees Affect the Active Versus Passive Debate?

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• This report examines the impact of fees on the performance of mutual funds and institutional managed accounts across equity and fixed income categories, using gross- and net-of-fees returns.
• Fees may negatively affect managers’ performance regardless of the type of investment account, though the magnitude of impact varies depending on the category.
• For active equity institutional managers, the one-year performance figures ending December 2017 were positive, as managers in 11 out of 17 categories outperformed their benchmarks, using gross-of-fees returns.
• However, the figures worsened over the 10-year horizon, as the majority of managers in 10 out of 17 categories underperformed their respective benchmarks.