ASX 200 outperformed active funds by almost 2% in first-half of 2025
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The news: The S&P/ASX 200, on average, outperformed actively managed Australian equity general funds in the first half of 2025 by nearly 2%, according to S&P Dow Jones Indices' mid-year SPIVA Australia scorecard released on Tuesday.
The numbers: The ASX 200 index gained 6.4% in the first half of 2025 while actively managed Australian equity general funds rose 4.5% on an asset-weighted basis.
The rate of underperformance among the active funds was 71%, better than the 85% rate over the last 15 years.
Active funds in the global equity general category meanwhile posted a 54% underperformance rate, lower than the 96% rate over 15 years. US stocks underperformed other markets and the US dollar weakened during the period.
The S&P/ASX Mid-Small index rose 6.8%. While 63% of actively managed Australian equity mid- and small-cap funds underperformed, the category had the lowest long-term underperformance of 58% over the last 15-years.
Meanwhile, active funds in the Australian Equity A-REIT category underperformed the S&P/ASX 200 A-REIT at a rate of 50%. While the A-REIT benchmark index gained 6% in the first-half of 2025, the active funds on average gained 7.1% on an asset-weighted basis.
The S&P/ASX iBoxx Australian Fixed Interest 0+ Index gained 4%, compared to the average 3.9% gains for actively managed Australian Bonds funds. The underperformance rate was 46%.
The context: According to S&P DJI APAC head of index investment strategy Sue Lee, even though many Australian active funds could not outperform the market, A-REIT funds had one of their lowest underperformance rates for a first-half period and active bond funds put themselves on track for a third consecutive year of majority outperformance.
However, she flagged that in every category “a firm majority of funds underperformed over the decade ending in June 2025”.
The source: S&P DJI Mid-Year 2025 SPIVA Australia Scorecard
