Trustnet Magazine Issue 44 October 2018 | Page 42

Data hub 40 x / / x 41 Crunching the biggest trends down into figures Index tracking: The facts outflows from US active funds in 2008 $259bn $205bn 1% of active managers beat the market over the long term on a risk- and cost-adjusted basis 0 – number of Dutch active funds that beat the market in the five years to 2016 1.7% 44 different types of fee may contribute to total fund charges figure FE TRUSTNET 40% of pension returns could be wiped out by paying 2% a year in charges rather than 1% of funds in the IA universe made top- quartile returns in each of the last three 12-month periods inflows into US passive funds in 2008 5% – total trading volume in markets accounted for by index investing The ongoing charges of the most expensive active fund in the IA North America sector are 58x as much as the cheapest passive Source: The Evidence-Based Investor; David Blake, Cass Business School; BMO Global Asset Management; Standard & Poor’s; Ritholtz Wealth Management; Work & Pensions Committee; Vanguard; Bloomberg; FE trustnet.com