Benchmarks outperform actively managed funds
Standard and Poor's (S&P) index versus active funds scorecard for the investment market has showed that benchmarks have outperformed a majority of actively managed funds and bonds over five years.
The ASX200 index has outperformed two-thirds of active Australian equity funds over the last five years, while the ASX200 has outperformed approximately half of active funds over the year to date.
The survey also found that the ASX Small Ordinaries index outperformed more than half of all active small-cap funds in the last five years, and 60 per cent of the actively managed funds over the last year.
The benchmark index for global equity outperformed more than 76 per cent of active global funds over five years.
The UBS composite bond index has outperformed more than 97 per cent of actively managed bond funds over the last five years, but only 25 per cent within the last year.
“Australian equity funds operate within a very efficient and heavily researched segment of the market, which is intensified by the fact that the Australian market is very top-heavy, with the top 20 stocks comprising 67 per cent of the market index,” said director of S&P index services Simon Karaban.
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