Another Reason to review our managed funds performance

Posted by Mike H on 8 July 2016 | Comments

Canstar August 2015

In April this year, the S & P Dow Jones released their SPIVA Australian Scorecard for year-end 2014. This regular scorecard reports on the performance of actively managed Australian managed funds versus the relevant benchmark index for each of those funds. Here′s a quote directly from that report:

“There is no consistent trend in the yearly active versus index figures, but we have consistently observed that the majority of Australian active funds in most categories fail to beat the comparable benchmark indices over three- and five year horizons.”

Note that the 5-year performance excludes the 30% of funds that ceased to exist (presumably because of poor performance)suggesting the managed fund performance to be worse than the table suggests.

NB: The exception seems to be in small to mid-cap market. Less intense analyst scrutiny may make the Efficient Market Hypothesis less powerful in this area.


Mike H

Please note the above is not investment advice. It is recommended that you seek advice from a professional investment advisor before acting on any information in this blog