Assets under Management, 1.4 Trillion Dollars no wonder the aggregate returns are only average. Incentives are to accumulate investor funds, not to earn investors money.I am dumbfounded as to why people continue to fund institutions that provide significantly less than an index return. It is just crazy to me that (for example) American Funds with 1.4 Trillion Dollars under management, boast to investors an (aggregate) compounded annual return over the last 5 and 10 year periods of 10% and 6.9% respectively. Although only very average, is unfortunately very much overstated. After consideration of fees and expenses, these 5 & 10 year returns would be reduced to 8.14% and 5.5% respectively and that is before income (capital gains) tax. Furthermore they may claim a 12% return to investors since inception (56 years) which after fees and expenses turns out to be 8.76% versus a return for the for the S&P 500 of 11.1%. -Makes no sense to me-
