Australian and global shares fund manager Forager Funds says it received broad support on its fee structure amid less-than-perfect performance in 2018.

According to The Australian Financial Review, active fund managers remain under pressure to lower fees as clients begin to question the value of returns offered by ‘active’ shops, as opposed to index funds.

Forager’s international fund, which primarily invests in ‘value’ stocks trading outside Australia, charges a management fee of 1.44% without a performance fee.

While its strongly performing Australian fund has a lower fee structure, with a performance fee for outsized returns, index funds and rules-based ETFs are routinely providing exposure to the same asset classes for less than 0.3%. As we reported here, the new BetaShares index fund charges has an industry-leading management fee of 0.07%.

In a podcast episode with The Rask Group, Stockspot founder, Chris Brycki, said one of chief issues with active investors are the high fees and poor alignment with investors.

“The incentives of people providing the money aren’t aligned with people managing the money,” Brycki says.

However, the case can still be made for having some active investing in a portfolio. According to Vanguard, less than 20% of trading on the Australian sharemarket is managed by ‘passive’ index funds, leaving the rest for active traders and investors.

Want to know the name and ticker code of our #1 ASX ETF for 2019? Click here to access our free investing report, including the name, ticker code and a full analysis of our favourite ETF.

Legal disclaimer: Chances are, the information you read on the BESTETFS website may contain a mix of factual information and general financial advice. Any information/advice on this website is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information and NEVER INVEST IN AN ETF OR MANAGED FUND BEFORE READING THE PRODUCT DISCLOSURE STATEMENT (PDS). If you don't read the PDS you're practically flying blind with one arm tied behind your back. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).