The hedge fund research provider has said that the last financial year was the third-best year for performance for the ASX 200 total return index in the last 25 years and also the first time that the index saw just one month of negative performance since 1996/1997 financial year.
In the 23 years since then, the total return index averaged less than five negative returns per 12 months with a negative average monthly return of -3.59 per cent. In the FY20/21, the fundmonitors.com total return index returned 27.80 per cent.
Meanwhile, the top 10 managers for performance returned an average of 84.55 per cent.
Of the 100 funds that beat the index, 62.5 per cent outperformed it with an average of 15.31 per cent
For the 60 funds that did not beat the index in the last financial year, the average return was 20.62 per cent and 53 per cent of the funds were long only, with the rest made up of long/short, equity income and market neutral.
“Clearly such short-term performance has to be viewed in a broader context, but the 2021 financial year performance will affect the longer term performance of funds, and investor and advisor portfolios for some time,” AFM said in a statement.
“This should not be ignored when assessing managers.”
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
