Fund managers struggle to add value

Fund managers are still failing to add value for investors with a survey by Intech for the first four months of this financial year showing only a third of share fund managers beat the S&P/ASX 200 benchmark. The median manager trailed the index by about 1 per cent.

Over the past year, median returns from share funds were minus 3.7 per cent, compared with the index's minus 2.8 per cent. The best share fund performers in October were Lazard at 4.3 per cent, Alpha at 4.5 per cent and Norwich's Portfolio Partners with 3.69 per cent. Over the year, Tyndall has performed best, delivering returns of 18.78 per cent, followed by Lazard with 11.68 per cent.

In bonds, the best manager was Invesco over the year. The median manager outperformed the benchmark by 0.22 over 12 months and by 0.04 per cent in October.