Environment Favourable To Active Management


    The favourable active management environment that was evident for most of 2012 has extended into 2013 with 79 per cent of large cap Canadian equity investment managers beating the S&P/TSX Composite Index in the first quarter of 2013, says the ‘Russell Canadian Active Manager Report.’ That compares to 81 per cent in the fourth quarter of 2012, which was the highest in 8½ years. The median large cap manager return was 4.7 per cent in the first quarter of 2013 compared to the benchmark S&P/TSX Composite return of 3.3 per cent. “This sounds like a repeat of what we said a year ago at this time, but the environment was excellent for active managers in the first quarter of 2013,” says Kathleen Wylie, head of Canadian equity research at Russell Investments. “In fact, taking into account the fourth quarter of 2012, the back-to-back percentage of investment managers outperforming the benchmark was the highest since the middle of 2001 ‒ even better than what we saw last year.”