How is your fund performing?

Find out if you are paying high fees for underwhelming performance from your fund

You can't control returns, but you can control fees

Over the long term, most fund managers will underperform the industry standard benchmarks by the cost of their fees.

Fund Category Comparison Index Funds Underperforming (%)
3yr 5yr 10yr
Avg. underperformance
Over 10 yrs
Average
Fees p.a
Multisector Moderate Morningstar Aus Msec Moderate TR AUD 96% 97% 96% -1.54% 1.58%
Multisector Growth Morningstar Aus Msec Growth TR AUD 90% 95% 92% -1.62% 1.69%
Bonds - Australia Bloomberg AusBond Composite 0+Y TR AUD 79% 87% 85% -1.64% 1.20%
Equity Australia Large Blend S&P/ASX 200 TR AUD 68% 65% 56% -0.74% 1.05%
Equity World Large Blend MSCI World Ex Australia NR AUD 80% 90% 80% -1.66% 1.47%
Equity Australia Real Estate S&P/ASX 200 A-REIT TR 72% 85% 72% -0.79% 1.27%

Source: InvestSMART, Morningstar, May 2018.
Only funds with > three year returns were included, and were compared to Morningstar's nominated benchmark. Fees are calculated by Morningstar as the average over 10 years.
Whilst every care has been taken in producing these numbers, InvestSMART does not guarantee the accuracy of the figures produced in the table.

Disturbing stats

Out of the 5,312 funds with a 10 year track record, 76% will underperform the industry standard benchmarks by an average of 1.75%, with average fees at 1.73%.

Underperform the industry standard benchmarks

76%

Of funds underperform the industry standard benchmarks

Funds Under Management

$328 Billion

Funds Under Management

Avg. Fees p.a.

1.73%

Avg. Fees p.a.

Avg. Underperformance

-1.75%

Avg. Underperformance

Analysis based on data sourced from Morningstar, as at May 2018. Funds that had a 10-year track record were analysed against the standard industry benchmarks. Whilst InvestSMART has taken care in producing these numbers, guarantees cannot be made around the complete accuracy of these figures.

Quotes from those in the know

Most Australian fund managers fell short in 2017
"As difficult as it is to pick an outperforming fund, when you do it is unlikely to continue that hot streak. Few managed to outperform the benchmark consistently over five consecutive years"
Patrick Commins
18 Jun 2018
Financial Review
Portrait of a sick system gives us a chance to put things right
"The commission says it's at a loss to understand how the retail stock pickers can be so bad. On the face of it it would take a rare and perverse skill to consistently produce worse results than leaving things alone."
Peter Martin
1 Jun 2018
Sydney Morning Herald
Fleecing the lambs of superannuation
"Warren Buffett says for "99 per cent" of us, trying to pick which fund manager will perform better than the next is practically impossible. But if fund managers on average track the market, what's the problem?

The reason is fees. Once you take out the (often massive) fees and charges you are hit with… the returns you get from your fund manager, on average, will be well below how the market has performed."
Anthony Klan
12 Jun 2018
The Australian

Don't let high fees kill your returns

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Performance figures after investment and admin fees.