Authored by: David Kautter

Key Central Bank Policy Rates Approach Cyclical Peak

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Over the past two weeks, central banks in the United States, United Kingdom, euro area, and Japan have all held monetary policy meetings. The communications following these meetings retained a hawkish bias, suggesting further policy tightening may be necessary—except for the Bank of Japan—however, additional interest rate hikes will likely be much less frequent for the remainder of this cycle. Despite this reality, we do not think major central banks will be quick to cut interest rates next year.

Global Equity Manager Performance: 2021

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The vast majority of active managers underperformed the index in 2021—the worst year for active global equities managers we have on record. This chart book is our annual summary of the absolute and relative performance of managers that report to our database.

Global Equity Manager Performance: 2020

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In 2020, 55% of active global managers underperformed the MSCI World Index (gross of fees), with the median manager underperforming by 150 basis points. This chart book is our annual summary of the absolute and relative performance of managers that report to our database.

Emerging Markets Equity Manager Performance: 2020

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Slightly more than half of active emerging markets equity managers underperformed the MSCI Emerging Markets Index (gross of fees) in 2020—the fourth time the median manager has underperformed the benchmark out of the last five years. This chart book is our annual summary of the absolute and relative performance of managers that report to our database.

Global ex US Equity Manager Performance: 2020

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In 2020, 62.9% of active global ex US managers outperformed the MSCI EAFE Index, gross of fees, with the median manager outperforming by 334 basis points, the highest margin in a decade. This chart book is our annual summary of the absolute and relative performance of managers that report to our database.

US Mid- to Large-Cap Equity Manager Performance: 2020

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For the seventh straight year, the majority of active mid- to large-cap managers underperformed in 2020, with 63.9% lagging the benchmark (gross of fees). This chart book is our annual summary of the absolute and relative performance of managers that report to our database.