The S&P MidCap 400 outperformed 73% of mid-cap funds, and the S&P SmallCap 600 outperformed 57% of small-cap funds.
However, S&P admitted, asset-weighted averages suggest that a majority of active managers were level with or beat their benchmarks.
“Our latest five-year data for equity funds can be interpreted favorably by proponents of both active and passive management,” said Srikant Dash, global head of research and design at S&P and author of the report.
However, the five-year data is unequivocal for fixed income funds; across all categories, except emerging market debt, more than 75% of active managers failed to beat their benchmarks. In addition, five-year asset-weighted average returns are lower for active funds in all but two categories.