Active managers still have a hard time outperforming the broader market index over a five-year period, according to research from Standard & Poor's (S&P).
The S&P/ASX 200 Accumulation Index outperformed about 71 per cent of general active Australian equity funds over the five years to December 2010.
Looking at the performance of active managers in the 12 months to December last year and the picture is even worse: 81 per cent underperformed the index.
"There has been a consistent theme of active retail funds underperforming relative to benchmarks, however, a high portion of funds continue to survive over lengthy time periods," S&P Australia head of indices Guy Maguire said.
However, managers of Australian small-cap funds did well over the five-year period.
At least 70 per cent of all active small-cap funds have beaten the index over the period.
Active bond managers lagged in performance, with the UBS Composite Bond Index outperforming over 82 per cent of active funds over three and five-year periods.
