Managers of stock mutual funds had a tough time beating the market in 2012, with two-thirds failing to achieve that goal.
That’s according to S&P Dow Jones Indices, which this past week released its 11th annual managed fund versus stock-index performance-score card.
U.S. stock funds that are actively managed, rather than track an index, posted an average return of nearly 14.7 percent last year.
The return for the broader market was about 16.2 percent, as measured by the Standard & Poor’s Composite 1500, an index that includes large-, mid- and small-cap stocks. Since 2002, the average percentage of managed funds underperforming in a given year was 57. In 2011, that figure peaked at 84 percent.
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Following are the percentages of funds that failed to beat the S&P Composite 1500 in each of those years:
2002 — 59 percent; 2003 — 48 percent; 2004 — 51 percent; 2005 — 44 percent; 2006 — 68 percent; 2007 — 49 percent; 2008 — 64 percent; 2009 — 42 percent; 2010 — 58 percent; 2011 — 84 percent; 2012 — 66 percent.