The AUSTRALIAN by Robin Bowerman
Investors in fixed income, by contrast, seem to operate in a world of eternal optimism – despite strong and prevailing market winds, they press on hoping for a change in wind direction.
This point was driven home with the release of the mid-year 2012 S&P Dow Jones SPIVA Australia scorecard.
This research measures the performance of active fund managers against S&P’s main market indices such as the S&P/ASX 200 accumulation index and the S&P/ASX Australian Fixed Interest index.
Once again, the results have stirred up debate about the role and cost of active fund managers compared with index tracking funds. For example, across the 12 months to the end of June, 72 per cent of active managers were outperformed by the index.