3 Dec 2022 (AFR) – Why the ETF surge explains the woes at Perpetual, Magellan

(3 December 2022, AFR, p40, Chanticleer) Here’s some insight into recent performance of managed funds, with comment on ETFs.

“Active equity fund managers employing highly paid stock pickers are facing tough times because they can’t match the surging inflows at exchange-traded funds.

“There are two statistics that explain why leading active equity fund managers such as Perpetual, Pendal Group, Platinum Asset Management, Magellan Financial Group and Janus Henderson are experiencing tough times.

“Since the start of 2017, passively managed funds have received positive net flows of $84.2 billion, while active funds have had net outflows of $9.1 billion, according to Morningstar.

“Not surprisingly, that five-year period has coincided with some terrible share price performance numbers. Pendal’s total return, including dividends, was minus 38 per cent, Perpetual’s return was minus 23 per cent, Platinum’s was minus 63 per cent and Janus Henderson just broke positive with a return of 0.5 per cent, according to Bloomberg.”

Read the full article, and see more juicy statistics, at AFR.com.