Active funds survive despite performance: S&P
At least 60 per cent of active managers failed to outperform their relative benchmarks over a five-year period, with the exception of the Australian equity small-cap sector, according to new data from Standard & Poor’s (S&P).
Despite these figures, the Index Versus Active Funds Australia Scorecard found that Australian equity funds also enjoyed the second highest survivorship rate compared to other peer groups.
Guy Maguire, head of S&P Indices in Australia, said there had been a consistent theme of active retail funds underperforming relative to the benchmarks.
“It is interesting to see such high survivorship rates for each of the active fund categories in the wake of underwhelming results for active retail funds,” he said.
The wins for active managers were found in small-cap funds, where at least 70 per cent beat the index over a five-year period; as well as AREITs, where 54 per cent of active funds outperformed the index over three years.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
