The ebb and flow of money managers ..

[Totoro]

Has anyone noticed that money managers are getting more vocal and explicit about the returns they've made in the past years? Or is it just me?

My broker has a money management product, now prominently on the front page with returns. Hidden in the small print is that the posted returns are gross. Total fees .. 2%

Wonder why they weren't as active in 2008

[Mdlerth]

Perhaps they all grew up in Lake Wobegon.

[Koogie]

You might be further amused by a study that was released in the business media here in Canada last week. Gasoline to the indexing fire...


Fund management performance in Canada has just hit a new low - The Globe and Mail

"""By at least one measure, active fund management in Canada has hit a new low.

A new report shows that the number of Canadian funds focused on U.S. large-cap stocks that outperformed the index over the past five years was precisely zero.

Not a single Canadian manager investing in U.S. stocks delivered higher returns than the S&P 500 index over that time, according to S&P Dow Jones Indices.

“The numbers are ugly. There isn’t any other way to describe it,” said Dan Hallett, vice-president of HighView Financial Group.

“The S&P 500 is a much harder index to beat,” he said.

But, he added, “I can’t remember it ever being that bad.”"""

[Totoro]

Entertaining indeed.

And yes: said broker doesn't advertise the returns vs. the S&P 500 of course.

Which they underperformed.

Of course.

[gcgang]

Sounds like a lot of "ebb" and not much flow.

Yet people continue to chase performance, affirming the "there's another sucker born every minute" axiom.