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Financial Happenings Blog
Sunday, September 02 2012
Last week Standard & Poors (S&P) released their latest SPIVA report into comparing active versus index returns looking at data up to the 30th of June 2012.  The latest report continues to show that active managers outside the small cap asset class are on average doing worse than the benchmark index return.

The latest results were:

  • A majority of active funds underperformed their respective benchmarks across all asset classes studied in the SPIVA Australia Scorecard.
  • Over the last five years, approximately 69% of active retail Australian equity general funds failed to beat the S&P/ASX 200 Accumulation index.
  • Active Australian equity small-cap funds significantly outperformed the benchmark across all periods studied in this report. Over the last five years, almost 80% of active Australian equity small-cap funds outperformed the S&P/ASX Small Ordinaries Index.
  • Almost 90% of active international equity general funds underperformed relative to the benchmark over the last year. Over both three- and five-year periods, at least 72% of international equities general funds failed to beat the index.
  • All active retail Australian bond funds studied in this report failed to beat the S&P/ASX Australian Fixed Interest Index over the last year. Similarly, 92% of funds in this category underperformed the index over a five-year period.
  • Approximately 86% of active Australian A-REIT funds failed to beat the S&P/ASX 200 A-REIT Index over the last year. However, the portion that underperformed falls to approximately 65% over a five-year period.
The numbers continue to suggest that you are better places simply holding the various asset classes index (barring small caps).

At A Clear Direction we think you can do slightly better thanthis over the long term by incorprating exposure to small, value and emerging markets asset classes into the mix whilst still using an index style approach to those areas of the market.

If you would like to find out more please be in contact.

Scott Keefer


Posted by: AT 03:45 am   |  Permalink   |  Email
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