MENU

Aussie investors giving managed funds the flick

The 2012 ASX Share Ownership Survey has been released today and makes for interesting reading.

Among other findings, investors holding shares through unlisted managed funds has dropped from 30% in 2000 to just 12% in 2012. The Global Financial Crisis and subsequent sharemarket falls, meant investors became frustrated with fund managers being unable to out-perform the market, and being forced to pay high fees for that under-performance.

Investors want to be more in control of their performance, and avoid the excessive fees charged by many unlisted funds. Until the industry changes its fee models, the decline is likely to continue.

A simple investment in any one, or a combination, of Commonwealth Bank (ASX: CBA), ANZ Bank (ASX: ANZ) or Westpac Banking Corporation (ASX: WBC) over the past year, would have outperformed the S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) comfortably, as you can see from the chart below – along with just about every fund manager.

ANZ CBA WBC Outperformance 2013

Source: Google Finance

Who says you have to pay high fees to beat the market?

In the market for high yielding ASX shares? Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Motley Fool writer/analyst Mike King doesn’t own shares in any companies mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.