Money Management looked at the FE five-Crown rated funds in the Australian equities sector to see which funds have consistently outperformed the sector over one, three, five and 10-year periods.
Of the 22 five-Crown funds in the sector, nine funds managed to consistently produce top quartile returns over all time frames, suggesting investors can rely on them over the long-term.
The following table shows the funds’ performance over the time frames, as well as the sector average.
The DDH Selector Australian Equities Fund produced the highest returns over the shortest period at 29.81 per cent for the year to date, while Macquarie’s Australian Shares fund produced the highest returns over a three and five year period, 15.19 and 17.38 per cent respectively.
Perpetual’s Pure Value Share Fund produced the highest returns over a ten-year period at 16.03 per cent, but dropped over the shorter time frames.
The sector returned 10.51 per cent for the year to date, 7.19 per cent over a three-year period, 8.90 per cent over a five-year period and 5.66 over ten years.
The chart below shows the performance of the three funds compared to the ACS Equity - Australia average, and the S&P ASX 200 benchmark over a five-year period.
Outperforming the index comes at a price it seems, given none of the funds placed in the top quartile for volatility.
Macquarie’s Australian Shares product disclosure...