Littleton, CO, February 2, 2009 – The National Association of Active Investment Managers (NAAIM), the trade group representing registered investment advisors dedicated to active trading and portfolio management strategies, announced today the inauguration of its Actively Managed Fund (AMF) Index.
The NAAIM AMF Index is a compilation of mutual funds created and managed by NAAIM members that employ disciplined active investment management strategies. Using historical data for 2008, the funds in the NAAIM AMF Index outperformed the S&P 500 by over 15 percent (-21.70% vs. -37.03%) and, excluding money market and bond funds, the average performance of nearly 20,000 mutual funds Morningstar tracks also by over 15 percent (-21.70% vs. -36.84%). Over a two-year period ending December 31, 2008, the funds in NAAIM’s AMF Index cumulatively outperformed the S&P 500 by over 16 percent (-17.28% vs. -33.62%), and the Morningstar-tracked mutual fund universe, less money market and bond funds, by over 14 percent (-17.28% vs. -31.57%).*
“The NAAIM AMF index demonstrates the superiority of active investment management regardless of market mood, but especially in sideways and bear markets,” said Will Hepburn, NAAIM president and principal of Hepburn Capital Management. “It is not only what investments, but when to invest and how, and when to remain on the sidelines that makes the difference,” he said. “The data strongly suggests that responsible investment managers should have an actively managed allocation in client portfolios for more effective diversification.”
Currently, there are 21 NAAIM Actively Managed Funds that comprise the index, and beginning in February 2009, NAAIM will report its live AMF Index performance monthly over its website, www.NAAIM.org. NAAIM will provide periodic updates and a review of the AMF Index’s rationale and methodology at its annual conference to be held in Denver, May 3 through 6.
“There are few mutual fund indexes reporting performance on a regular basis, and NAAIM intends to provide members’ mutual fund performance regularly going forward,” said NAAIM member Ronald Rowland, president of Capital Cities Asset Management and chief administrator of the NAAIM AMF Index. “Recent market turmoil is reflected everywhere, and these funds are no exception, but when compared to the industry as a whole, the NAAIM funds performed remarkably well, confirming the effectiveness of active management strategies – both for funds and for customer portfolios.”