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Over the six-month period ending June 2024, a majority (54%) of funds across all Australian fund categories underperformed their assigned benchmarks.
As highlighted in the SPIVA Global Scorecard, the first half of 2024 proved to be a particularly challenging market environment for active managers across developed equity markets, as the outperformance of the very largest companies resulted in a high proportion of index constituents underperforming their benchmarks.
In Australia, here are the key highlights
- H1 2024 proved to be a particularly challenging market environment for active managers across developed equity markets. 72% of Global Equity funds domiciled in Australia underperformed the S&P World Index, in line with the underperformance rates (70-85%) of those domiciled in U.S., Europe and Canada.
- Australian domestic equity funds had relatively better results; a slim minority (48%) of Australian Equity General funds underperformed the S&P/ASX 200, while less than one-third (32%) of Australian Equity Mid- and Small-Cap funds underperformed the S&P/ASX Mid-Small. Australian Equity A-REIT funds were an exception with a 79% underperformance rate funds underperforming, partially driven by a high portion (15.4%) of funds getting liquidated / merged.
- Australian Bond managers continued to add value; after a record low underperformance rate (26%) in 2023, 33% of funds underperformed in H1 2024 on the back of the tightening credit spreads.
To find out more information and download S&P Dow Jones Indices Mid-Year SPIVA Australia 2024 report please visit their webpage here.
This article is opinion, not advice. It is not possible to invest directly in an index. Exposure to an asset class represented by an index may be available through investable instruments based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. S&P Dow Jones Indices makes no assurance that investment products based on the index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor, and S&P Dow Jones Indices makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle.
