Comments on: Investment Management is Big Business http://allfinancialmatters.com/2009/04/17/investment-management-is-big-business/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 25 May 2012 20:09:01 +0000 hourly 1 http://wordpress.org/?v= By: Chris http://allfinancialmatters.com/2009/04/17/investment-management-is-big-business/comment-page-1/#comment-415766 Chris Mon, 20 Apr 2009 14:04:26 +0000 http://allfinancialmatters.com/?p=3339#comment-415766 What is the profit margin on a bag of cheetos, 50%?? The margin on the gel for my hair is over 100%. Why do we quibble over 1%? Do we expect money managers to work for free? I know it sounds like a lot of money (and it is), but 1% is less than grocery store margins. What is the profit margin on a bag of cheetos, 50%?? The margin on the gel for my hair is over 100%. Why do we quibble over 1%? Do we expect money managers to work for free? I know it sounds like a lot of money (and it is), but 1% is less than grocery store margins.

]]> By: Lucas http://allfinancialmatters.com/2009/04/17/investment-management-is-big-business/comment-page-1/#comment-415759 Lucas Mon, 20 Apr 2009 12:15:23 +0000 http://allfinancialmatters.com/?p=3339#comment-415759 JLP, Don't forget the hidden "brokerage commission" fees not included in that total, as well as the "advisory" fee paid by investors in so called wrap accounts. You could easily double or even triple that $70B number. A shameful, incredibly profitable model used (with rare exception) by private firms who escape the scrutiny of publicly traded peers. JLP,
Don’t forget the hidden “brokerage commission” fees not included in that total, as well as the “advisory” fee paid by investors in so called wrap accounts. You could easily double or even triple that $70B number. A shameful, incredibly profitable model used (with rare exception) by private firms who escape the scrutiny of publicly traded peers.

]]> By: Michal http://allfinancialmatters.com/2009/04/17/investment-management-is-big-business/comment-page-1/#comment-415420 Michal Sat, 18 Apr 2009 11:02:18 +0000 http://allfinancialmatters.com/?p=3339#comment-415420 These rates mentioned in the report are really low compared to fees in my country (Poland). The average for equity funds is 3.5-4%. These rates mentioned in the report are really low compared to fees in my country (Poland). The average for equity funds is 3.5-4%.

]]> By: sam http://allfinancialmatters.com/2009/04/17/investment-management-is-big-business/comment-page-1/#comment-415315 sam Fri, 17 Apr 2009 20:03:08 +0000 http://allfinancialmatters.com/?p=3339#comment-415315 I guess the upshot of this is that we should look for low fees. I guess the upshot of this is that we should look for low fees.

]]> By: ObliviousInvestor http://allfinancialmatters.com/2009/04/17/investment-management-is-big-business/comment-page-1/#comment-415301 ObliviousInvestor Fri, 17 Apr 2009 17:24:02 +0000 http://allfinancialmatters.com/?p=3339#comment-415301 According to a recent study done by Kenneth French (link below), we spend $100 billion each year in attempts to outperform ourselves. Big business indeed! http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1105775 According to a recent study done by Kenneth French (link below), we spend $100 billion each year in attempts to outperform ourselves. Big business indeed!

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1105775

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