Did large funds withstand the COVID-19 sell-off?
The largest active Australian equity funds have not recovered losses from the global sell-off in March induced by the COVID-19 pandemic, according to data.
FE Analytics data found the largest funds within the Australian Core Strategies universe were Dimensional Australian Core Equity Trust ($2.7 billion), IOOF Strategic Australian Equity ($2.08 billion), IPAC SIS Australian Share Strategy No 3 (4.05 billion), IML Australian Share ($1.9 billion), and IPAC SIS Australian Share Strategy No 1 ($1.86 billion).
Since the start of 2020 to 30 September, 2020, none of these funds had made a return, and only one had beat the sector average of a loss of 8.21%.
The top performing fund was the IPAC SIS Australian Share Strategy No 1 at a loss of 6.78%, with a max drawdown of -30.9% for the same period.
IPAC SIS Australian Share Strategy No 3 came in at second at loss of 10.13% and a max drawdown of -31.62%, followed by Dimensional Australian Core Equity Trust at a loss of 11.08% with a max drawdown of 34.4%, IOOF Strategic Australian Equity at a loss of 14% with a max drawdown of -33.66%, and IML Australian Share at a loss of 15.9% with a max drawdown of 30.7%.
Largest active Australian equity fund returns versus sector since start of the year to 30 September 2020
Source: FE Analytics
Dimensional had the largest max drawdown and had its largest sector allocation towards materials at 23.1%, followed by financials (21.67%), consumer discretionary (9.5%), industrials (8.74%), and healthcare (8.5%), according to its latest factsheet.
Its top holding was Commonwealth Bank of Australia at 5.25%, followed by BHP Group (4.63%), CSL (4.45%), Fortescue Metals (2.54%), and National Australia Bank (2.34%).
Over the three years to 30 September, 2020, only the two IPAC funds managed to beat the sector average of 14.88%, at 19.2% and 16.08% respectively.
Dimensional followed at 12.7%, IOOF at 7.75%, and IML at 0.47%.
Largest active Australian equity fund returns versus sector since over three years to 30 September 2020
Source: FE Analytics
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