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Active managers generally performed poorly through 2011, particularly in global equities. The median manager underperformed the MSCI World Index by 2.3% in 2011. This was dominated by a very poor Q3. This was one of the worst quarters for active managers in the last decade - exposure to high beta or emerging markets dominated the underperformance.
While developed markets only fell 5% over 2011 as a whole, this masked significant deviations across the year (Q3 markets fell 16.5%; Q4 they rose 7.7%), and between sectors and regions.
A surprisingly high number of managers (64% or 125 out of 350) in the MPA Global Equity universe (core, value and growth) underperformed the MSCI World index in 2011. However, while only 32% of the core universe outperformed - highlighting the disparity of approaches across the value universe (was largely due to the yield strategies in the value universe).
STYLES THAT GENERALLY DIDN'T WORK IN 2011
STYLES THAT DID WELL
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