STEPHEN CRANSTON: SA funds consistently fail to beat global indices
SA market is heavy going for index trackers but there are a handful of active managers that add long-term value
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)...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.