Australia’s leading active fund managers are counting the cost of not investing in Commonwealth Bank (CBA) as they close out the financial year. These managers largely avoided CBA, deeming the stock overpriced, and consequently missed out on the significant gains from the company’s share price rally.
Fund managers specialising in Australian equities have faced challenges in outperforming the S&P/ASX 200 index, which has been significantly boosted by the strong performance of the banking sector. According to Morningstar data, the 15 largest fund managers have underperformed the index by an average of two percentage points this year.
Commonwealth Bank is one of Australia’s largest financial institutions, providing a range of banking and financial services. The underperformance highlights the difficulty active managers face in beating the market when overlooking key stocks like CBA. The missed opportunity serves as a lesson as fund managers reassess their strategies for the new financial year.
