Proof that some SA asset managers do outperform SWIX over 50% of the time
Promoters of index-tracking funds often argue that active fund managers have not been able to outperform the local equity market, making passive solutions the wisest choice for equity exposure in an individual portfolio.
However, this graph highlights how Prudential Investment Managers (funds shown in red) is among several active asset managers in South Africa whose equity unit trusts have beaten the FTSE/JSE Shareholder Weighted Index (SWIX) more than 50% of the time since the SWIX index was introduced in January 2002, nearly 15 years ago. So active managers can add value to investor portfolios – just make sure you choose one with a strong long-term track record. A good financial adviser will know who they are.