State Street charges next to nothing and tracks the index...

State Street charges next to nothing and tracks the index though...

State Street also has funds management as one part of its business, so unlike Magellan/PTM and these mega-idiotic Australian fund managers who decided to put all their eggs in the one basket (fee income from fund products), it has many other things to fall back on. This is why when you earn lots of cash from fees while times are good, you need to be diversifying your entire business model. Not paying dividends - what MFG just did in its interim announcement was suicidal.

PTM, Magellan, MFG - they all failed to do that. The only exception is Macquarie, but Macquarie added funds management to its investment bank and even there it has so many capabilities that it doesn't matter if one or a few strategies underperform benchmarks.

If anyone can show me a funds management business that has *turned around* in Australia I'll give you a gold star.