05
Dec

Australian Fund Managers continue to underperform the Index benchmarks

This information is general in nature and should not be relied on for your personal financial planning needs. You should seek personal financial advice of your own.

The latest SPIVA Australia Scorecard report issued by SP Dow Jones, shows that the S&P/ASX 200 had a strong rebound in the first half of 2019, however the majority of Australian large-cap equity funds delivered smaller returns than the benchmark. In the 12 months ending June 2019, Australian large-cap equity funds recorded an average return of 6.3%, well below the gain of 11.6% by the S&P/ASX 200. Of the funds in this category, 93.2% failed to outperform the benchmark.

The international equity market also enjoyed a strong rebound in the first half of 2019. In the one-year period ending June 2019, the S&P Developed Ex-Australia LargeMidCap gained 12.1%, while international equity funds marked an average gain of 9.2%, with 72.9% of funds underperforming the benchmark.

Similar results are evident in other Asset classes.

It is critical to get your choice of asset manager correct to ensure you meet your retirement goals. Speak to your Experien Financial Services’ adviser to make sure you are on the right track.

Source: S&P Dow Jones Indices LLC, Morningstar. Data as of June 30, 2019. All returns in AUD. Past performance is no guarantee of future results.

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