SA active funds underperform despite Covid-19 boosting market volatility
The passive vs active debate has been raging since 2008, and the passive side seems to be winning, at least in SA
Almost three quarters of active funds in SA funds failed to beat their benchmark index in the first half of 2020, calling into question claims that volatility makes it easier for investors who pick and choose assets to outperform.
A survey by S&P Dow Jones Indices, which has been keeping a score of the active vs passive debate since 2002, found that 73% of SA equity funds lagged behind its index of 50 largest SA companies, and more than a third put up a weaker performance than its broader benchmark. ..