Today Mercer have released details of their 2010 fund manager scorecard. The results are not good reading for active managers. The median fund, of the 100 surveyed, under-performed the ASX300 by 0.6%. The ASX300 return for the year was 1.9%.
As a point of comparison, the Australian Core Equity Trust we use for clients returned 3.56% for the year.
Care needs to be taken in looking at one year data to provide any useful insight into investment performance. However, the data provides more anecdotal evidence of the extra risk involved with active management.
Regards,
Scott Keefer
