Active managers struggle in Q2

first_img In fact, only 17% of Canadian large-cap equity managers surveyed beat the benchmark S&P/TSX composite index, which showed a gain of 5.1% during the period, its largest quarterly gain in two years. However, the median large-cap manager’s return, based on Russell Canada’s survey of 142 Canadian institutional products, was a much smaller 3.4%. The gap was the widest seen since Russell Canada launched its report in 1999. “With the strength in gold stocks in the first two quarters of the year, their weight in the index has doubled since the end of 2015,” says Kathleen Wylie, head of Canadian equity research with Russell Canada, in a statement. “As most managers are generally underweight this sector, gold has become the latest concentration issue.” Gold stocks surged by a record 41% in Q2, but large-cap managers were underweight on the index by roughly 3% on average. Four of the top 10 stocks were gold stocks, accounting for more than a quarter of the index’s gain. Barrick Gold Corp., was the top stock and was held by less than 20% of large-cap managers. The gains followed a 39% leap for gold stocks in the first quarter. Still, the lag by active managers is not as severe as in 2011, when the weighting of gold stocks in the index peaked at 14%, and managers were underweight by an average of 6%, Wylie says. Strength in the energy sector, led by gains in TransCanada Corp. and Enbridge Inc., also presented challenges for Canadian large-cap equity managers who were 3% underweight on energy on average. On a positive note, 67% of large-cap managers held Canadian Natural Resources Ltd., which rose 15.7% during the quarter and was the second-best performing stock in the index. Although Q2 marks the second consecutive quarter in which active managers have struggled to beat the index, Wylie says there were previously six consecutive highly favourable quarters for active managers through to the end of 2015. “There will be periods in which active management struggles particularly in Canada with such a concentrated index,” says Wylie. “But over the past five years, including these challenging periods, an average of 61% of large-cap managers have beaten the benchmark by an average of roughly 50 basis points per quarter.” All investment styles in the active management report struggled to beat the benchmark return of 5.1% in Q2, with a nominal difference in median returns. Dividend managers fared slightly better than other styles, with a median return of 3.5% compared with 3.4% for growth managers and 3.2% for value. Photo copyright: nexusplexus/123RF IG Wealth amends product shelf Facebook LinkedIn Twitter Jade Hemeon Related news Share this article and your comments with peers on social media Keywords Mutual fundsCompanies Russell Investment Group Canadian VC funding activity surges in 2016 nexusplexus/123RF Active investment managers in Canada had the toughest time beating the benchmark index in the second quarter (Q2), ended June 30, than in any quarter since 1999, according to Toronto-based Russell Investments Canada Ltd.’s quarterly report on active managers. Franklin Templeton launches new real asset fund Purpose looks to fill retirement income gap with longevity fundlast_img read more

Democrats keep winning the popular vote. That worries them.

first_imgHomeNewsElectionsDemocrats keep winning the popular vote. That worries them. Nov. 14, 2020 at 5:00 amElectionsGovernmentPoliticsDemocrats keep winning the popular vote. That worries them.Associated Press7 months agoelectionspopular vote NICHOLAS RICCARDIAssociated PressDemocrats won the popular vote in this year’s presidential election yet again, marking seven out of eight straight presidential elections that the party has reached that milestone.And, for some Democrats, that’s worrisome.President-elect Joe Biden has so far won 50.8% of the vote compared to the 47.4% who voted for President Donald Trump, a 5 million vote advantage that is likely to grow as Democratic bastions like California and New York continue to count ballots. Biden’s 77.5 million votes to date are the most for any winning candidate, and Trump’s 72.3 million also set a high water mark for a losing one.Experts predict Biden’s margin of victory will surpass former President Barack Obama’s 4 percentage point popular vote lead in 2012. Only Obama’s landslide 2008 victory — with a 7 percentage point margin in the popular vote — was larger in recent elections.But what alarms many Democrats is a growing gap between their popular vote tallies and their political power. Democrats may be winning over more supporters, but as long as those votes are clustered on the coasts or in cities and suburbs, they won’t deliver the congressional victories the party needs to enact its policies.That power gap is especially clear this year. While Biden was racking up those historic margins, Democrats lost at least eight seats in the House of Representatives and failed to gain a single statehouse — in fact, they lost control of New Hampshire’s legislature. They also fell short of taking back control of the U.S. Senate, with their hopes now resting on winning two run-off elections in Georgia that are considered an uphill climb for the party.“There’s a massive structural challenge to the majority of Americans having any political power anytime soon,” said Rebecca Katz, a liberal Democratic strategist. “It’s a problem.”Whether it’s a problem — or a necessary check on power — is a point of debate. The founders created a U.S. system of government based partially on geography. Wyoming, with its population of 500,000, has as many senators as California, home to 39 million people. House seats are awarded based on population, but districts can be drawn to dilute the impact of types of voters. The presidency is a won by amassing a majority of electors allocated to states.“Power is not allocated by the popular vote,” said Simon Rosenberg, a veteran Democratic strategist. “What we have to get better at is not just winning more votes, but winning in more parts of each state, and in more states.”The disparity has only been growing as the country gets more polarized. When George W. Bush won the White House in 2000 through an Electoral College win despite losing the popular vote, it was seen as a fluke.Bush won reelection in 2004 with 50.7% of the national vote. But Democrats have won it every presidential election since, including in 2016, when Democrat Hillary Clinton won 2.9 million more votes but lost the White House to Trump because she narrowly lost critical swing states and did not win a majority of electors.The Trump-era polarization has accelerated the divide. Trump has performed well with white voters, specifically white voters who have not graduated from a four-year college — a group that is fairly evenly distributed throughout the 50 states. Democrats, meanwhile, have gained ground with college graduates, who are more likely to cluster in cities, and in states like Massachusetts and Colorado.Another bulwark for the Democratic coalition, Black, Latino and other racial minority voters, are likewise clustered in cities and certain states, and less represented in a broad swath of rural states that help give Republicans their geographic edge.The results in the 2018 midterm was especially clear: Democrats lost ground in the Senate even as they netted 41 seats to win control of the House of Representatives.It’s easy to see how the dynamic plays out in campaigns. Trump repeatedly slammed Democratic states like California and New York and Democratic-controlled cities during his presidency and reelection campaign. Biden, who couldn’t win just by appealing to places where his party was strong, argued the country needed to unify and stop fighting.The increasing gap between the majority and those actually in power troubles even those benefiting from it.“Republicans can be glib about this because it’s working for them, but I don’t think it’s a good long-term solution,” said Liam Donovan, a Washington, D.C.,-based GOP strategist. “For the long-term health of the party and of the country, you have to hope you’re not just winning barely with a diminishing rump.”Still, Republicans’ strong performance in state legislatures makes it likely they can lock in gains during the upcoming once-a-decade gerrymandering, by drawing lines for statehouse and congressional districts that pack voters into districts that favor the GOP. The party’s landslide 2010 win during Obama’s first midterm helped them do that over the past decade.“They’ll be able to cement this for a new decade,” Donovan said. “They’re figuring out new ways of consolidating power with the minority of the electorate.”Tags :electionspopular voteshare on Facebookshare on Twitteradd a commentChanging Election TrendsRooftop Cinema Club touches down with new drive-in at Santa Monica AirportYou Might Also LikeElectionsFeaturedNewsThird candidate enters County Supervisor raceMatthew Hall2 weeks agoFeaturedGovernmentNewsMcKeown announces retirementBrennon Dixson2 weeks agoFeaturedNewsPoliticsGOP seeks unity, even if that means embracing election lieGuest Author1 month agoNewsPoliticsIn GOP stronghold, Biden pushes for his infrastructure planGuest Author1 month agoFeaturedNewsPoliticsU.S. Senator Alex Padilla endorses Rick Chavez Zbur for AD50 seatClara Harter1 month agoFeaturedNewsPoliticsMalibu City Manager alleges harassment by councilmanGuest Author4 months agolast_img read more