Today I “celebrate” 20 years in the industry. 10th February 1997 seems like a long time ago now and indeed I have changed quite a bit from the 21 year old graduate trainee back then!
I remember thinking back then that there must be some special formula that leads you to the good investments and that my boss at the time must be some sort of genius. I soon found out that neither were the case but rather the key to success was to be honest, be yourself and do what you believe to be right. Seems simple but so many times I have come across people in our industry over the years who have failed to hold onto these simple rules.Read more
Now before you all think I have lost the plot please bear with me. I believe in active management, although I accept there are times when passive is best and I have and will use it where I feel it is appropriate.
Now the FCA has just produced a report on the active fund management sector and has not been particularly complimentary. They said “Our evidence suggests that actively managed investments do not outperform their benchmarks after costs and that some active funds offer similar exposure to passive funds, but charge significantly more.”
Now you may think this sounds like I should be running for the hills and denying all knowledge of this? Yet I agree with the FCA, almost. I would change the wording to “most actively managed investments” and this is a really important point to highlight. There are an awful lot of mediocre funds out there and very often they are the most widely held.Read more