We take a look at the recent SPIVA AUS/US 2014 scorecard on Active Managers vs their relevant benchmark indices. The results show that only 1 in 4-5 managers outperform their benchmark index. This suggests there is a huge amount of money that is invested with managers, paying fees, when the client could simply look to ETFs as an alternative with lower costs, and possibly outperform. The other point it makes is outperformance is very difficult to achieve, and thus, good managers are worth paying for. Full note (VIEW LINK)