Study: 84 pct of stock funds underperformed in '11

[March 13, 2012]  BOSTON (AP) -- A study finds that stock mutual fund managers had an unusually tough time beating the market last year. In fact fewer than one in five achieved that goal.

That's according to S&P Indices, which on Monday released its 10th annual fund performance scorecard. About 84 percent of U.S. stock funds that are actively managed, rather than passively tracking indexes, underperformed last year. From 2007 through 2011, 61 percent underperformed.

Those assessments are based on the investment return of each fund, compared with the S&P index representing the market segment in which each fund invests.

It's rare for most stock funds to outperform, primarily because returns are reduced by investment fees. Those fees are hard to offset, even if a manager is a strong stock-picker.

[Associated Press; By MARK JEWELL]

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