SUMMARY

The SPIVA Institutional Scorecard extends the S&P Indices Versus Active (SPIVA) U.S. Scorecard to consider institutional accounts in addition to the mutual funds. We also examine the impact of fees on both account types.

Overall, underperformance among institutional equity accounts was not meaningfully different from that reported for mutual funds. For example, 79% of large-cap institutional accounts and 82% of large-cap mutual fund managers underperformed the S&P 500® on a gross-of-fees basis over the past 10 years. Net-of-fees, underperformance by both fund types increased by approximately 7% (see Exhibit 1).