S&P Dow Jones Indices Launches First SPIVA Scorecard for the MENA Region

Rhea-AI Summary

S&P Dow Jones Indices has launched the inaugural SPIVA MENA Scorecard, tracking the performance of actively managed equity funds in the Middle East and North Africa. The bi-annual report reveals that 68% of MENA active equity funds underperformed the S&P Pan Arab Composite Index in 2020, rising to 93% over ten years. Additionally, 58% of GCC-focused funds underperformed the S&P GCC Composite over one year. The launch aims to provide valuable insights as investors navigate post-COVID market recovery.

Positive

• Launch of the inaugural SPIVA MENA Scorecard enhances S&P DJI's research offerings in the MENA region.
• The SPIVA MENA Scorecard provides crucial performance benchmarks for investors.

Negative

• 68% of MENA active equity funds underperformed the S&P Pan Arab Composite Index in 2020.
• 93% underperformance rate of MENA active funds over a decade indicates long-term challenges.

LONDON, April 7, 2021 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI"), the world's leading index provider, today announced the inaugural publication of the S&P Indices Versus Active Funds (SPIVA®) Scorecard, measuring the performance of equity funds domiciled in the Middle East and North Africa (MENA).

Starting with this reporting cycle, the SPIVA MENA Scorecard will be published bi-annually and tracks the performance of actively managed MENA equity funds denominated in local currencies against the performance of their respective S&P DJI indices over one, three, five and 10-year time horizons.

The SPIVA MENA Scorecard found that in 2020, 68% of MENA active equity funds underperformed the S&P Pan Arab Composite Index. This number rose to 93% over the 10-year period. Similarly, the SPIVA MENA Scorecard also showed that 58% of Gulf Cooperation Council (GCC)-focused active funds underperformed the S&P GCC Composite Index over the one-year period. Saudi Arabian equity funds performed relatively better than their regional fund peers with 23% underperforming the S&P Saudi Arabia Index in 2020. However, when the time horizon is extended to 10 years, 78% of Saudi Arabian equity funds also underperformed their benchmark.

"We are very excited to introduce and extend our global SPIVA Scorecard to our clients and market participants in the MENA region. S&P DJI is committed to offering timely and relevant research, data and insights as global investors continue to grapple with and recover from the adverse impact of the COVID-19 pandemic and economic slowdown on financial markets," said Charbel Azzi, Head of Middle East, Africa & CIS at S&P Dow Jones Indices.

For nearly two decades, S&P DJI has published research and data surveying more than 10,000 actively managed funds globally. Beginning with the launch of the SPIVA® U.S. Scorecard in 2002, the scorecards also track fund performance in countries such as Australia, Canada, Europe, India, Japan, Latin America and South Africa. While the results vary each year based on market conditions, certain themes have emerged over time including actively managed funds across different countries and regions underperforming their benchmarks over short- and long-term periods.

For more information about the SPIVA Scorecards and its methodology, visit https://www.spglobal.com/spdji/en/spiva/#/  and to access S&P DJI's research and commentaries, please go to https://www.spglobal.com/spdji/en/ 

ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500^® and the Dow Jones Industrial Average^®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spdji.com.

View original content:http://www.prnewswire.com/news-releases/sp-dow-jones-indices-launches-first-spiva-scorecard-for-the-mena-region-301263679.html

SOURCE S&P Dow Jones Indices

FAQ

What does the SPIVA MENA Scorecard measure?

The SPIVA MENA Scorecard measures the performance of actively managed equity funds in the MENA region against S&P DJI indices.

When will the SPIVA MENA Scorecard be published?

The SPIVA MENA Scorecard will be published bi-annually.

How many MENA active equity funds underperformed their benchmark in 2020?

In 2020, 68% of MENA active equity funds underperformed the S&P Pan Arab Composite Index.

What is the performance of Saudi Arabian equity funds according to the SPIVA MENA Scorecard?

In 2020, 23% of Saudi Arabian equity funds underperformed the S&P Saudi Arabia Index, but 78% underperformed over a ten-year period.

What is the significance of the SPIVA scorecards?

SPIVA scorecards provide insights into the performance of active funds versus benchmarks, focusing on long-term trends in fund management.