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
The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered.
Rather than taking a controlling approach, the latest generation of overseas private equity deals is helping advice firms to achieve their growth ambitions, three commentators have said.
Private wealth firm Fitzpatricks Group has appointed a newly created head of product, who previously spent 20 years at CFS, to bolster its range of investment options.
The Financial Services and Credit Panel has made a written direction after advice regarding non-concessional contributions meant an individual was forced to withdraw over $330,000 from their super.
