SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (46733)2/23/2012 10:47:14 PM
From: Spekulatius  Read Replies (1) of 78748
 
re LM - the problem is that LM's equity and income funds have to compete with ETF (from Blackrock and State Street or Vanguard) that have a 0.2% expense ratio typically. Since they don't outperform those, the asset start to migrate out.

Now if you accept that ETF or index funds are the future and those have 0.2% expense ratios than paying 2% for assets is too high - that would be 10x revenues. That is one underlying reason why mutual fund companies with bad performance are underperforming. Some like Troweprice are shielded because they have some well performing funds and a 401k business. LM has neither so it is going to succumb to the ETF crowd and/or has to lower their fund charges quite a bit.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News