Skip to main content
A Clear Direction
rss feedour twitterour facebook page linkdin
Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
A Clear Direction Financial Planning logo

 Financial Happenings Blog 
Thursday, February 11 2010

Scott Francis in his latest Eureka Report article shines the light on the performance of well known and used active fund managers.  Scott reports that not one of the managers in the sample were able to beat the ASX300 index return for 2009.  He suggests that part of the answer is that managed funds have a number of structural disadvantages that work against them. These include:

  • The need to hold some cash for investor redemptions.
  • The hidden (market impact) costs of trading.
  • The money flow of investor trading.

Scott concludes that not finding one managed fund to beat the average market return in a year is surprising. It certainly brings into question the role of active managed funds in portfolios, especially in comparison with the many low-cost index and ETF products that offer access to different sectors and markets.

Ultimately, investors have to decide whether the structural headwinds of a managed fund such as market impact costs, cash holdings and high fees make them an efficient way to access investment markets - especially when their performance fails even the most basic hurdles.

Please click on the following link to be taken to the article -
Australia's biggest losers.

Posted by: AT 04:52 am   |  Permalink   |  Email
Request for Information 
If you have questions, or would like more information, please go to our Contact page and leave your name and contact information.

Plan Well, Invest Well, Live Well! Financial advice providing a clear direction

A Clear Direction Financial Planning and Portfolio Management ABN 85 147 572 870

Level 19
10 Eagle Street
Brisbane QLD Australia
Ph: (07) 3303 0269

Authorised Representative (398444) and Credit Representative (403292) of FYG Planners Pty Ltd AFSL/ACL 224 543.

ASIC - Financial Advisers Register

All content of this website is copyright © A Clear Direction Financial Planning Pty Ltd, 2017

FYG Planners Pty Ltd & A Clear Direction Financial Planning Privacy Policy