Active Management Adds Value

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    Active management added value in the third quarter of 2015 as 75 per cent of Canadian large cap investment managers outperformed the S&P/TSX Composite Index, says Russell Investments Canada’s ‘Active Manager Report.’ This is the highest percentage since the fourth quarter of 2013 and an increase from 62 per cent in the second quarter. However, the median large cap investment manager return was down 6.2 per cent for the third quarter, notably better than the S&P/TSX Composite’s return which dropped 7.9 per cent, the steepest quarterly decline in four years. “No question the third quarter proved difficult for investors and their portfolios given the sell-off in equities both in Canada and globally,” says Kathleen Wylie, head of Canadian equity research at Russell Investments Canada, “but amid the negative numbers we saw the value of active managers.” The third quarter also marked the fifth consecutive quarter that large cap managers have beaten the benchmark.