Bulls, Bears & a Croupier: The insider's guide to profiting from the Australian stockmarket

Chapter 22: Money managers, money makers

There are plenty of rich fund managers in Australia, but not many rich clients. I’m not picking on anyone in particular when I make this comment, but the reality is that fund managers generally get paid considerable sums for the wealth they create for other people. There are some notable exceptions, but the trend for money managers to charge a fee based on the percentage of funds under management follows US practice, where seven-figure salaries and bonuses for money managers are commonplace. As in any other human pursuit, there is a select bunch of great money managers, a small number of poor ones and a large pool in the middle. The elite group who consistently outperform the market deserve to be well ...