The Royal Commission on Financial Services and the Market crash last year have changed many investors perception of the Financial Services profession. The greedy AMP and other financial planners are just greedy, unscrupulous high profile used cars salesmen. Fund managers are just as greedy collecting high management fees and performance fees.
When they outperform the indices, its fine, but when they underperform in subsequent year(s) they are still changing high management fees and the previous performance fees are kept even though, looking at the five years or more they have under perform the indices. The fallen high profile managers just continue to fool the innocent with distant utopia but losing momentum. When they remain very rich, the investors have lost their hard earn savings or fall short of their invest goals believing they are superior elite fund managers.
In the lockdown investors have woken up, with more time, they prefer to be hands on with research, invest in very low cost ETF, DeFi system and direct stockholdings. They reinvested some or all of their funds and are now performing better than the fallen high profile managers. With so much information available on the internet and media, there are less layback and poorly informed investors.
Many once upon a time, high flying but now poorly performing greedy fund managers, that have previously risen in a few years in popularity will fall as fast as they have risen. The truly superior fund managers are ultimately tested in the boom and bust cycle. Many mediocre fund managers will be unveil from disguise and will be recorded as history, just subdue to burping noise.
Whether Magellan are truly superior fund managers and regain its status, time will tell.
www.magellangroup.com.au/funds/magellan-global-fund-open-class-asx-mgoc/reports-asx-releases/
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