Let the underwhelming begin.

According to the latest S&P INDICES VERSUS ACTIVE FUNDS (SPIVA) SCORECARD, the year 2012 "marked the return of the double digit gains across all the domestic and global equity benchmark indices. "

However, according to the scorecard, the gains passive indices made did not translate into active managementreturns, as most active managers in all categories, except large-cap growth and real estate funds, underperformed their respective benchmarks in 2012.

Performance lagged behind the benchmark indices for 63.25 percent of large-cap funds, 80.45 percent of mid-cap funds and 66.5 percent of small cap funds.

The performance figures are equally unfavorable for active funds when viewed over three- and five- year horizons. Managers across all domestic equity categories lagged behind the benchmarks over the three-year horizon. The five-year horizon yielded similar results, with large-cap value emerging as the only category that maintained performance parity relative to its benchmark.

Among international equity categories, 66.26 percent of global funds, 56.27 percent of international funds and 57.62 percent of emerging markets funds were outperformed by benchmarks over the past three years.

Yet a large percentage of international small-cap funds, on the other hand, continue to outperform the benchmark regardless of the period being measured, indicating that active management opportunities are still present in this space.

Also, actively managed fixed income funds fared better than their equity counterparts in 2012. Most fixed income funds outperformed their benchmark indices except for funds in the longer term government, longer term investment-grade and high-yield categories.

The turmoil of the past five years saw nearly 27 percent of domestic equity funds, 23 percent of international equity funds and 18 percent of fixed income funds merge or liquidate. 

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