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.
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