Half of all equity peer groups in the Australian Core Strategies universe do not have a single member that has generated above-average returns with below-average volatility in the recent past, FE Analytics data shows.
Money Management reviewed all the equity sectors to find out which proportion of funds have achieved better than average returns with volatility over the past five years.
While no sector was a particular standout, the strongest sector was ACS Equity - Australia Equity Income where 16.7 per cent of funds have produced strong returns at a low volatility rate. That said, one-third of the sector’s members have returned less than the average fund with higher volatility.
The four funds with this optimal combination of returns and volatility were Microequities High Income Value Microcap, IML Equity Income, Merlon Australian Share Income and Russell Australian Shares Enhanced Income.
In the ACS Equity – Australia, 7.5 per cent of its 200 members have above-average total returns and below-average volatility for the past five years. But 43.5 per cent are worse than the average fund on both measures.
The ACS Equity – Global sector also has lacklustre results in this research, with only two of its 167 members – or 1.2 per cent - producing good returns at a low risk rate. The two successful global funds were Ellerston Global Equity Managers and CFS Acadian Global Managed Volatility Equity.
The Asia Pacific ex...