STEPHEN CRANSTON: S&P’s Zack Bezuidenhout: far from a running dog
Bezuidenhout had no part in the downgrade — but his indices have exposed the deplorable performance of active fund managers, writes Stephen Cranston
It can’t be easy for S&P’s Zack Bezuidenhout these days. He has had no part in the sovereign downgrade yet is guilty by association. Like the rest of S&P he has to be a stooge of white monopoly capital. I am told that the ratings division pays no attention to Bezuidenhout’s S&P Dow Jones indices. I am not so sure. The deplorable performance of the active fund management industry exposed by S&P could easily qualify as a systemic risk to the SA financial system. Asset managers have had their own downgrade after these terrible results. The report is even called the Spiva, which doesn’t sound like the most flattering name for this industry. It certainly puts into doubt the view that one of SA’s strengths is its financial institutions. Can you believe that 72% of active funds could not outperform their relevant indices in 2016? And this was hardly a freak year. Over three years the proportion rises to 80%. In bonds it looked better. 87% of short-term bond funds, many of which used to be ...
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