Getting started in managed funds (01/10/2013)
Tim joined Montgomery in July 2012 and is a senior member of the investment team. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Tim focuses on quant investing and market-neutral strategies.
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Chris B
:
I think this is sooooo true. My superannuation fund is a small fund, it isn’t HESTA or REST. I have had a hunch that the biggest contributing factor to a funds performance is the pool of money they are managing. And the study suggests this. Warren Buffett has been saying this is his biggest restriction for 20 years.
I got other good hints from this as well, that the Small Ords is not a great index, actually there really is not a good index in Australia at all. The ASX 200 is dominated by the big 4 banks and RIO and BHP making a large percentage.
Even health funds, if they advertise on TV, I will keep away, TV advertising is very expensive so I do not want funds being used on expensive TV advertising.
Unfortunately, funds want more people to get more fees therefore more profit.