Equity fund managers marginally beat the market in the first quarter, with income-focused funds performing best as the global hunt for yield drives up stocks such as banks and property trusts.
For the three months to the end of March, the median of 147 Australian share funds returned 9 per cent, ahead of the S&P/ASX 200 and All Ordinaries returns of 8.1 per cent, according to data released yesterday by research group Mercer.
On a median measure, income-oriented fund managers had the best quarter, delivering 10.2 per cent ahead of long-only managers at 9.1 per cent.
But individually, long-only managers took the four top spots overall, led by Lazard's Australian equity fund (17.3 per cent), UBS's Australian equity Halo fund (16.7 per cent ) and Colonial First State's WS leaders concentrated fund (15.3 per cent).
Legg Mason's Australian equity income fund returned 15.2 per cent in the quarter.
