Why have SA equity funds invested in both foreign and domestic international equity markets not kept up with their benchmarks in their markets?
Nerina Visser of ETF SA strategist and adviser says it affirms what they have been saying for years.
Its a nice confirmation of the value that lies in investing in an index tracking passively managed product. And it is not just a South African experience. The S &P Report, The Spiva Report, are surveys that are done around the world. They publish their results on a regular basis, and the numbers vary anything between the low 70s to over 90 % of actively managed funds not being able to out perform the relative benchmark in their markets.— Nerina Visser of ETF SA strategist and adviser
Zack Bezuidenhoudt, Head of South Africa and Sub-Saharan Africa at S&P Dow Jones Indices, joins Bruce Whitfield on the line from Nigeria to talk about this issue.
About 75% of these equity fund managers are under performing on these benchmarks.— Zack Bezuidenhoudt, Head of South Africa and Sub-Saharan Africa at S&P Dow Jones Indices