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.
Source: Google Finance
Who says you have to pay high fees to beat the market?
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