Managed funds underperform in December quarter

morningstar australian equities property

31 January 2012
| By Staff |
image
image
expand image

Australian managed funds on average failed to outperform their respective indices in the December quarter in every major category except small companies funds, according to Morningstar's latest managed fund league performance tables.

"October's rally after a dismal third quarter gave way to deteriorating conditions later in the quarter, which reduced the returns from most managed fund categories," said Morningstar senior research analyst Julian Robertson.

Resources stocks particularly suffered, with the S&P/ASX Resources Index down 2.55 per cent, according to Morningstar.  

The outperformance of the smaller companies funds over the S&P/ASX Small Ordinaries Index over the quarter and the 2011 calendar year demonstrated the greater opportunities for value-add in this less-researched market segment, Morningstar stated.

Overall there was a narrow dispersion of returns in the large-cap Australian shares sector, where only 40 of the 103 large-cap Australian share funds in the tables managed to beat the benchmark over the quarter.

The best-performed sector was property, with global-listed property funds gaining 8.86 per cent for the quarter, and Australian-listed property outperforming the wider Australian share market.

Fixed income returns were modestly positive at around 2 per cent but most did not surpass their benchmarks in the quarter.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 day 7 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

5 days 13 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 3 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 5 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

4 days 11 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

3 days 14 hours ago