Every fund investor would like to see the manager of the actively managed funds that they own beat the market every year, but they've been left wanting for well over a decade.
The lack of consistent outperformance on the part of large-cap active managers (the main contributors to the Ultimate Stock-Pickers concept) has been well documented by the S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard. For the five-year period ended in December 2016, the index group noted that 88.3% of active large-cap fund managers had on average underperformed the S&P 500 TR Index. The results have been similar across all investing styles. A paltry 8.5% of large-cap value managers have outperformed their index, versus 12.1% of large-cap core managers and 15.2% of large-cap growth managers outperforming their respective benchmarks.
The Morningstar Ultimate Stock-Pickers Team does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.