S&P's Soe Says Volatility Hurts Active Managers

The video discusses the challenges of consistent fund outperformance, highlighting that only a small percentage of funds remain in the top quartile over time. It explores whether fund success is due to luck or skill and examines the impact of fees on fund performance, particularly in fixed income. The video also covers security selection skills, market conditions, and the effect of volatility on active management. It concludes with industry feedback on the scorecard methodology and addresses the passive vs. active management debate.

What does the data show about the consistency of outperforming funds over a three to five year horizon?

What is the significance of the 7% and 2% figures mentioned regarding funds remaining in the top quartile?

How do fees impact the performance of active fixed income managers compared to equity funds?

What are the reasons provided for the underperformance of most active funds across asset classes?

What is the overall takeaway for investors regarding past performance and future expectations?

What does the speaker suggest about the relationship between market volatility and the performance of active managers?

How does the speaker respond to the criticism that their report favors passive management?