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)...