The relentless flow of capital out of actively managed funds and multi-asset strategies, into technology-enabled quantitative low cost passive models and strategies has been utterly phenomenal. The Citywire article below illustrates this. The amount of good quality choice available to intermediaries and UK savers is brilliant. BUT: good value for money is not only found in these low cost solutions. Watch out for our Crescendo on Friday where we make the case for active fund management. We show how dedication and hard work can increase your probability of finding great managers- and that they can and do contribute to multi-asset solutions that produce excellent results. Our Vanbrugh fund, which, through its over 15 year life, has generated consistent top quartile returns (#2 in the sector since launch)…. Has done so with over 60% of the portfolio (and often much more than this) invested purely in actively managed open-ended funds. In fact, given our low weighting to US large caps through this entire period (oooph) it’s only because of these funds that we’ve performed so well. There’s a place in multi asset investing for good quality solutions - active and passive. Beware of those who knock either side. The truth is, they’re complementary, not competitors. It’s consistent performance net of costs that matters. Daniel Lockyer Ben Mackie Dan Cartridge David Chapman
Jonathan Prout
5mo
Well put Ben , Planners , Allocators and DFMs run a very very real risk of being penny wise pound foolish. Total return achieves good client outcomes , not low cost.
Retirement Planning Specialist | Helping people to retire on their terms | Author of 'Planning for Retirement - Your guide to financial freedom' | Independent Financial Adviser
6mo"Beware of those who knock either side" Surely, you have to go where the evidence takes you, and once you adjust for factor exposures, there often isn't any genuine alpha in actively managed funds, hence the popularity of Timeline et al. with their passive/factor approach.