Fund Managers Under-performance

You would expect that, on average, the fund industry would underperform the market roughly by the amount of their administration fees. They do that – and more, according to a new report cited in the Telegraph:

An astonishing 94 per cent of equity fund managers have failed to deliver above-average returns in each of the past five years, according to shocking new figures.

Figures calculated for the Telegraph by Citywire, the financial analyst, show that only 11 of the 175 fund managers with a track record of at least five years have beaten the average performance in their sector over the period.

Related posts:

  1. Lake Wobegon & Fund Managers
  2. “Average” tax cut is a meaningless notion
  3. Blaming mutual fund buyers rather than sellers
  4. Hedge Fund Success Dooming Industry to Lower Returns?
  5. Performance Persistence at Venture Funds

Comments

  1. Index Funds. Low-Fee Index Funds

    Paul Kedrosky writes: Infectious Greed: Fund Managers Under-performance: You would expect that, on average, the fund industry would underperform the market roughly by the amount of their administration fees. They do that – and more, according to a new …

  2. Anne says:

    Important post.