Managed funds underperform in December quarter
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.
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
