S&P Dow Jones Indices has been the de facto scorekeeper of the ongoing active versus passive debate since the first publication of the S&P Indices Versus Active (SPIVA) U.S. Scorecard in 2002.
The SPIVA South Africa Scorecard measures the performance of actively managed South African equity, global equity and fixed income funds denominated in South African rand (ZAR) against their respective benchmark indices over various time horizons.
Mid-Year 2022 Highlights
In a tumultuous first half of 2022, many actively managed funds in South Africa deftly navigated falling markets. Less than one-half of active South African funds underperformed in each of the South Africa Equity (36% and 45% for large caps and the broad market, respectively), Short-Term Bond (34%) and Diversified/Aggregate Bond (23%) categories, while slightly more than one-half underperformed in the Global Equity category (52%). Underperformance rates generally increased with measurement horizons, with a cross-category average of 75% of active funds underperforming over the past 10 years.

- South Africa Equity Funds: The S&P South Africa 50 fell 6.3% in H1 2022, while South Africa Equity funds lost 5.2% and 4.0% on equal- and asset-weighted bases, respectively, and 36% of funds underperformed the benchmark. Underperformance rates rose to 72%, 90% and 93% over the 3-, 5- and 10-year horizons, respectively. Compared to the S&P South Africa Domestic Shareholder Weighted (DSW) Capped Index, which dropped 5.3% in H1 2022, 45% of South Africa Equity funds underperformed. Over the 3-, 5- and 10-year horizons, underperformance rates climbed to 39%, 52% and 72%, respectively.
- Global Equity Funds: The S&P Global 1200 declined 17.2% during H1 2022, and Global Equity funds fell 18.1% and 17.9% on equal- and asset-weighted bases, respectively. Over the six-month period, 52% of funds in the category underperformed the benchmark. Over the 3-, 5- and 10-year periods, 92%, 96% and 96% of funds underperformed, respectively.
- Short-Term Bond Funds: The STeFI Composite climbed 2.2% in H1 2022, and 34% of Short-Term Bond funds underperformed the index. Funds in this category gained 2.2% and 2.1% on equal- and asset-weighted bases, respectively, over six months. Over the 3-, 5- and 10-year periods, 10%, 14% and 23% of funds underperformed, respectively. On a risk-adjusted basis, however, underperformance rates rose to 83%, 82% and 98% over the 3-, 5- and 10-year periods, respectively.
- Diversified/Aggregate Bond Funds: The S&P South Africa Sovereign Bond 1+ Year Index dropped 1.9% in the first six months of 2022, and 23% of Diversified/Aggregate Bond funds underperformed the index. Over the long term, 43%, 75% and 56% of funds underperformed over 3-, 5- and 10-year horizons, respectively.
- Fund Survivorship: Liquidation rates for all categories were in single digits for the one-year period ending June 30, 2022. The South Africa Equity fund category had the highest attrition rate, at 3.0%. Over the 10-year period, 39% of South Africa Equity funds merged or liquidated, and 31% of funds disappeared across all categories.