Globally as well as locally, individuals and governments are realising the advantages of mandating saving for retirement, and managed fund firms are uniquely positioned to capture this trend.
The money men are often considered to be the smartest guys in the room, so why not make money by investing in them?
Fund managers are beneficiaries of the billions of dollars that flow into superannuation each year thanks to Australia's mandated retirement system. They earn fees even if their stock picks are poor and because of their high fixed costs, they benefit immensely from economies of scale.
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Matthew Smith writes on personal finance specialising in companies, managed funds and investing themes from our Sydney newsroom. Connect with Matthew on Twitter.
