A few active managers excel rising stock market

Active managers who made the right picks beat passive managers among managers of Australian share funds in the three months to October 2006. Takeover activity inflated the share prices of targets and rumoured targets to the advantage of managers with overweight positions in those companies. Two Lazard funds topped returns in the three month period, according to a survey by Mercer Investment Consulting. The median return of share funds surveyed was 8.9 per cent, which as less than the 9.5 per cent rise in the ASX200 index, which means that active managers that made the wrong picks dragged the average return down.

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