The S&P Indices Versus Active (Spiva) scorecard is usually time for great smugness among index managers. Over the five years to June 2021, for example, 93% of SA equity funds failed to beat the S&P 50, admittedly a rarely used benchmark, while 92% of global equity funds available in rand failed to beat the S&P Global 1,200 and 76% of bond funds failed to beat the SA Sovereign Bond Index.

But is this going to be a permanent underperformance? In SA choosing the right equity benchmark is an active decision, and over the past six months a small majority of funds, 51%, have been able to beat the most commonly used benchmark, the capped shareholder weighted index (Capped Swix)...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now