AIM Equity Fund versus Benchmark (as of 12/31/2012)
S&P recently
reported on the 1 year, 3 year, and 5 year performance of actively managed
mutual funds versus various S&P indices: http://tinyurl.com/l82pf3m
According to the
S&P report, “The year 2012 marked the return of the double digit gains
across all the
domestic and global equity benchmark indices. The gains passive indices made did not,
however, translate into active management, as most active managers underperformed
their respective benchmarks in 2012.”
80.45% of mid-cap
funds and 66.5% of small cap funds. The performance figures are equally
unfavorable for active funds when viewed over three- and five- year horizons."
The students in
the AIM program have also found the past five years to be a challenging period.
The fund performance on an absolute basis was good; however, like the majority
of actively managed small cap fund managers, the benchmark return exceeded the annualized
returns of the AIM Equity Fund. The students (as well as the mutual fund managers) look forward to the period when
active fund managers are rewarded for their fundamental analysis of individual
firms.
The table (which can be enlarged if you click on it) shows the 1, 3 and 5 year returns of the AIM Equity Fund versus the benchmark.
The fund performance on a risk-adjusted basis (as measured by the Sharpe Ratio) indicates better results. Given the portfolio's average beta of about 0.90 and the lower overall portfolio standard deviation, the AIM Fund on a risk-adjusted basis matches or slightly exceeded its benchmark during the studied periods.
The table (which can be enlarged if you click on it) shows the 1, 3 and 5 year returns of the AIM Equity Fund versus the benchmark.
The fund performance on a risk-adjusted basis (as measured by the Sharpe Ratio) indicates better results. Given the portfolio's average beta of about 0.90 and the lower overall portfolio standard deviation, the AIM Fund on a risk-adjusted basis matches or slightly exceeded its benchmark during the studied periods.