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The SPIVA Australia Scorecard measures the performance of actively managed funds relative to benchmarks over various time horizons, encompassing equity, real estate and bond funds, while providing statistics on outperformance rates, survivorship rates and fund performance dispersion.
Key highlights include:
- 2024 was characterized by contrasting outcomes for active managers in Australia.
- In the Global Equity General category, 85% of active managers failed to match the benchmark’s return, with a similar trend observed in the Australian Equity A-REIT category.
- Australia Equity General funds fared relatively better, with a 56% underperformance rate.
- Active funds in the Australian Bonds and Australian Equity Mid- and Small-Cap categories achieved majority outperformance for a second consecutive year. Their one-year underperformance rates were 30% and 37%, respectively.
- Underperformance rates typically rose as time horizons lengthened; the 15-year underperformance rate ranged between 58% (Australiana Equity Mid- and Small-Cap) and 95% (Global Equity General).
To find out more information and read the SPIVA® Australia Year-End 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.
