Global Funds Held Up Better Than The US Funds In June And Q2

According to Citigroup, “Investment performance among flagship funds was weak in June and 2Q, as managers struggled against declining markets and stepped up volatility…. For 2Q, equity funds depreciated by 10% on average, while the average bond fund appreciated 1%. On a relative basis, sector performance was in-line in June but underperformed by 20 bps in 2Q. Among managers, relative results were mixed as over 50% of the sector underperformed the Morningstar category.” “While data is more limited, non-US funds generally held up better as the Euro and GBP composites declined 6% and 7%, respectively, versus the 10% US sector drop…. Among equities, BEN, ART, and FII were the best absolute performers during the month as their composites declined 1% to 2% versus 3.5% for the sector,” the analysts mention. Citigroup adds, “FII, JNS and AMG were the best on an absolute basis, while BLK, AB, and LM were strongest during 2Q with appreciation of 1.5% to 3%. On a relative basis, AB and BLK generated nearly 60 bps of fixed income alpha during 2Q. Underperformers: AB and ART among equities during 2Q and ART and BEN among fixed income.”