Active and passive funds that beat their peers
In the crowded space of Australian equities, there is a number of active funds that have managed to outperform those having an index-tracking approach over the 11 month-period ending in May, 2017 according to Money Management’s analysis based on FE Analytics’ data.
FE Analytics, which analysed the best performing funds investing the majority of their assets in Australian equities and not focused on a specific industry sector, found that between 30 June, 2016 and 31 May, 2017, Legg Mason Martin Currie Select Opportunities Fund topped the AMI Equity Australia sector’s performance table, with its 28.67 per cent total return, net of fees, distributions reinvested.
At the same time, when reviewing some of the top performing index-tracking funds, BetaShares – FTSE Rafi Australia 200 ETF (25.33 per cent) was the only fund sitting in the sector’s top quartile. The remaining four passive funds, out of five best performers, were in the second quartile and still managed to beat the peer group average with lower annual fees than their active rivals.
On the other hand, according to FE Analytics data, all the six top performing active funds found themselves in the top quartile.
Apart from Legg Mason’s Martin Currie Select Opportunities Fund, the remaining top five active Aussie equities funds were:
- PM Australian Companies (27.04 per cent)
- L1 Capital Australian Equities Wholesale (24.83 per cent)
- Dimensional Australian Value Trust (23.84 per cent)
- Lazard Select Australian Equity (22.47 per cent)
- Nikko AM Australian Share Wholesale (22.22 per cent)
The data also showed that the average fund in the AMI Equity Australia sector was making 12.26 per cent over that time period.
AUTHOR
Oksana Patron
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
