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Just the truth or a "bad" joke ?
"Overall in Europe, four out of five active equity funds failed to beat their benchmark over the past five years, rising to 86 per cent over the past decade, according to S&P’s analysis of the performance after fees of 25,000 active funds." (March 2016)
If this encourages some retail investors to question their financial advisers and fund groups, then that is a good thing. The passive voice is getting louder and louder!!
More specific: Almost every actively managed equity fund in Europe investing in global, emerging and US markets has failed to beat its benchmark over the past decade, raising more questions about the value stockpicking managers add.
An in-depth study by S&P Dow Jones Indices also found that 100 per cent of actively managed equity funds sold in the Netherlands have failed to beat their benchmark over the past five years. Daniel Ung, director of research at S&P Dow Jones Indices, said: "The 100 per cent figure is very shocking. The other statistics are not much better. We are not saying active management is dead, but active managers need to justify what they are doing."
David Blake, director of the pensions institute at London’s Cass Business School, said: "The average equity fund manager is unable to deliver outperformance from stock selection or market timing. This means a typical investor would be almost 1.44 per cent better off per annum by switching to a UK equity tracker (my two bits/Ralph Gollner: Index-tracking-funds).
David Blake goes on: "A small group of star fund managers are able to generate superior performance, but they extract the whole of this outperformance for themselves via fees, leaving nothing for investors. All but the most sophisticated investors should invest in index funds."
Andrew Clare, who holds the chair in asset management at Cass Business School, added: "Finding a good active manager of developed-economy equities is very difficult, which is why many institutional investors don't bother looking."
My question to you: What about your emotions now?
Wonderstruct. Dumbfounded. Shocked. Paralysed. Flabbergasted. Startled. Awestruck.
Perhaps befuddled, bewildered, or perplexed?
Always ALSO do your own Research...it may help you, reward you, SAVE FEES !!
Check out this full article here: www.ft.com/content
