Active managers overcharge: ResearchBY KANIKA SOOD | TUESDAY, 28 MAY 2019 12:02PMMost active Aussie equity funds should be charging between 35 and 65bps as a significant chunk of their returns can be attributed to factors instead of skill, according to analysis of Morningstar data by VanEck. Related News |
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The commentary is particularly self serving.
Final price to investor varies with the arrangements that are struck between Fund Managers and the platform vehicles that are pervasive across the advised marketplace. In other words, price varies markedly with scale.
In this way, the average price is nowhere near 111bps and is well below 100bps for active, large cap Australian equity funds.