Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
Futures fell after Trump said the U.S. will raise tariffs on more than $500 billion worth of Chinese imports, increasing trade tensions.Marketsread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
Education Minister Ong Ye Kung says the Singapore government has been preparing for the challenge of an aging workforce "for the past 20 years."Employmentread more
Stocks in Asia fell Monday morning following an escalation in the U.S.-China trade war late last week.Asia Marketsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
Hours after President Trump said Sunday he had "second thoughts" about escalating the trade war with China, the White House sought to explain his remark because it was...Politicsread more
President Donald Trump said that he would have a major trade deal with U.K. after it leaves the European Union.Politicsread more
Actively managed funds are stumbling again this year.
J.P. Morgan shared the latest performance data with its clients, revealing only 41 percent of active fund managers are beating their benchmark year to date versus 52 percent last year in the same time period.
"Active equity managers are facing a challenging year … with performance highly bifurcated across styles," U.S. equity strategist Dubravko Lakos-Bujas said in a note to clients Friday. "Large/Core Funds … category has been underperforming due to narrowing stock leadership YTD, fewer opportunities (low stock dispersion), and a series of market narratives driving style and sector rotations (e.g., fiscal/monetary policy, inflation scare, trade tensions)."
Lakos-Bujas noted 66 percent of value funds are outperforming their benchmark versus just 43 percent of growth funds. But the value index is roughly flat this year versus the growth index's 12 percent gain, offering a lower performance threshold to beat.
Investors are reacting to the weak numbers by pulling $28 billion from active funds and adding $18 billion to passive funds during the second quarter.
"We estimate that Passive is now more than 50% of equity AUM," the strategist said.
To be sure, active managers aren't doing everything incorrectly.
On Thursday Facebook shares plunged 19 percent a day after its disappointing earnings report, resulting in the largest one-day market value loss in history for a U.S. stock.
Goldman Sachs strategist Arjun Menon said in a report Thursday mutual funds were "underweight FB, which boosted performance relative to benchmarks."
The average large-cap mutual fund is underweight Facebook by 20 basis points versus its benchmark, according to Menon.