The Fee Free-Fall Will Continue

Mutual fund fees have been on the decline for seven years, and the trend isn’t expected to slow. This according to an article in Institutional Investor. The article reports that PwC’s 2019 U.S. Mutual Fund Outlook report reflects that by 2025, combined active and passive expense ratios will decline by 22 percent. The report also states that U.S. mutual fund assets are expected to increase by 46 percent by 2025, but that industry revenue will… Read More

Institutional Investor’s Rich List

In May, Institutional Investor published its “Rich List” of the world’s 25 highest-earning hedge funds– which, it reports, earned a total of $15.38 billion (approximately $615 million each). In order to make the list, a firm had to earn at least $225 million (compared to $130 million in 2016). “This is an increase of nearly 40 percent from 2016,” the article says, “a year when the top 25 collectively earned the lowest amount since 2008.”… Read More

Vanguard Has Seen More Inflows than All Competitors Combined

In the last three calendar years, investors have poured $823 billion into low-cost index and ETF funds managed by Vanguard, about 8.5 times as much as all of its competitors combined, according to a recent New York Times article. The article quotes Morningstar’s Alina Lamy, who says this type of flow is unprecedented. “Since the crisis,” she says, “investors have been saying, ‘I may not be able to control the market, but I can control… Read More