The results of the Mid-Year 2016 S&P Dow Jones Indices Versus Active Funds (SPIVA®) Australia Scorecard have been released today. The report, issued bi-annually by S&P Dow Jones Indices, tracks the performance of almost 1,000 actively managed equity and bond funds in Australia against their relevant S&P DJI benchmarks over one-, three-, and five-year horizons.
The full set of SPIVA Australia data and commentary can be found in the attached report.
In summary, data for the year ended June 30, 2016 reveals:
· The majority of Australian funds were outperformed by their relevant index benchmarks in each single asset category over the one-year period. This is largely consistent with longer-term trends observed, although the performance of Australian mid- and small-cap equity funds was significantly worse than the five-year trends observed.
· Six out of 10 Australian large-cap equity funds (59.7%) failed to beat their relevant benchmark index (the S&P/ASX 200) over the one-year period, with an equal-weighted average gain of just 0.1%. Over the five-year period, 69.2% of funds in this category were beaten by the benchmark.
· More than six out of 10 Australian mid- and small-cap equity funds (61.3%) failed to beat their relevant benchmark (the S&P/ASX Mid-Small Index) in the one-year period. This is a reversal of observations over the five-year period, when 62.0% of funds in this category outperformed the benchmark.
· International equity, Australian bond and A-REIT funds continued to perform poorly, with more than eight out of 10 funds across all three categories failing to beat their relevant benchmark indices (S&P Developed Ex-Australia LargeMidCap, S&P/ASX Australian Fixed Interest Index, and S&P/ASX 200 A-REIT) over the one-year period.
Australian General Equity (Large-Cap) Funds:
· 59.68% underperformed the S&P/ASX 200 Index in 1-year period
· 65.69% underperformed the benchmark in 3-year period
· 69.18% underperformed the benchmark in 5-year period
Australian Equity Mid- and Small-Cap:
· 61.32% underperformed S&P/ASX Mid-Small Index in 1-year period
· 51.55% underperformed the benchmark in 3-year period
· 38.00% underperformed the benchmark in 5-year period
International Equity General:
· 80.73.% underperformed the S&P Developed Ex-Australia LargeMidCap Index in 1-year period
· 91.35% underperformed the benchmark in 3-year period
· 91.89% underperformed the benchmark in 5-year period
Australian Bonds:
· 89.47% underperformed S&P/ASX Australian Fixed Interest 0+ Index in 1-year period
· 92.16% underperformed the benchmark in 3-year period
· 88.68% underperformed the benchmark in 5-year period
Australian Equity A-REIT:
· 87.50% underperformed The S&P/ASX 200 A-REIT in 1-year period
· 93.06% underperformed the benchmark in 3-year period
· 92.41% underperformed the benchmark in 5-year period
