Undeserving money managers eat up 25% of returns of retail investors

Discussion in 'Wall St. News' started by learner88, Jan 11, 2019.

  1. Retail investors are better off if majority of their money managers are fired. These money managers do not create value for their clients. They create value for themselves at the expense of their clients. Beats me why these people can continue this evil value destruction business for so long.

    https://www.ft.com/content/0e5d9a1e-e56c-348a-9ccd-8fd1249092da

    Retail fund investors lose up to a quarter of their gross returns in costs and charges, according to research from the EU’s main securities regulator. The disclosure will ratchet up pressure on the asset management industry to show that it is giving value for money.

    In its first annual report of fund charges, the European Securities and Markets Authority said that Ucits — EU-regulated funds sold to retail investors — carried charges that “are a significant drain on fund performance”.

    While the report stated that the effect of charges on return varied across asset classes, it found that funds’ average fees accounted for a quarter of gross returns between 2015 and 2017.

    Esma also showed that passive equity funds “consistently outperform” active equity funds once fees were taken into account. It said costs for active funds were “significantly higher” than those for passive funds, which led to lower performance net of costs for active compared with passive.

    The EU securities regulator noted that investment companies’ management fees were the main component of their high charges, while fund entry and exit fees have a more marginal effect.
     
  2. MrMuppet

    MrMuppet

    Wow...why?..how? I mean...what took you so long? 90% of market participants lose. Did you really think the money managers were the other 10%?
     
    jys78 likes this.
  3. I wonder what percentage of elitetraders on this forum lose. maybe elitetraders here do better than conventional active money managers?
     
    jys78 likes this.
  4. Visaria

    Visaria

    Nah, i wouldn't think so. Quite a few on here can't even read.
     
    apdxyk, bln, MKTrader and 3 others like this.
  5. MKTrader

    MKTrader

    I seriously doubt it. This place is filled with posers, losers and wannabes...especially those who brag about their results. The few successful ones are probably inactive and never talk about being great traders.
     
  6. MarkBrown

    MarkBrown

    your only a loser if you are "NOT" doing what you love. follow that and the money will magically come.
     
    apdxyk and trader99 like this.
  7. ironchef

    ironchef

    We are all above average.