Practice What You Preach?


Posted by: Swindells FP, on July 1, 2013.


A recent article in the Financial Times by Chris Newlands highlighted some interesting trends amongst the behaviour of professionals that work within and promote the advantages of active fund management.

Swindells Financial Planning has always shied away from the crystal ball gazing and the hunch betting antics of actively managed funds; preferring instead to adopt a properly diversified, low cost, passive fund management strategy that is based upon the finest academic investment research.

Mr Newlands’ article cites a recent survey by Ignites of 1,001 staff, many of whom promote the use of active funds to the retail (you and me) investor.  The survey results showed that of this sample:

  • Two thirds have a sizeable amount of their personal savings in passive funds.
  • Including 45% who say they are “significantly” invested via this strategy.
  • Whilst only 20% say they avoid passive funds altogether.

Mr Newlands goes on to say that these findings should not be a surprise given that 75% of active fund managers never actually beat the market they aim to outperform!

David Norman, a former Credit Suisse Asset Management executive, commented that the active fund management industry is being exposed as “one huge sales and marketing machine with little evidence of any value creation”.

Swindells Financial Planning believes that these findings are yet another example in an ever expanding list extolling the use of a properly researched, properly allocated and diversified, low cost, passive investment strategy over the cynical marketing and claims of the active investment fund industry.

To read further information on how we invest and why please see our investment policy statement here.

Please do not hesitate to contact us via our Seaford or Uckfield, Sussex offices if you would like to talk to us further or by using the consultation form on this page.



|

Enter your email

Get free investment, pensions and wealth management news and advice.

* indicates required

*We will never share your details with any third party.


Categories



Client Stories





Book a consultation


Your Name (required)

Email (required)

Phone Number

Age

Employment Status

Income

What you would like to talk about?

captcha

Enter exactly what you see above






Enter your email to receive free relevant news and updates.

* indicates required

*We will never share your details with any third party.


Latest… View all




Putting the current stock market decline in context


There’s no doubt hyperbolic headlines depicting the recent falls on the world’s financial markets are potentially anxiety-inducing. With the FTSE 100 Index falling to its lowest level since April 2017, the effect of the headlines is to promote a sense of uneasiness; we’re here to remind you that this shouldn’t be the case. Instead of […]

Read more →


Inheritance Tax is an avoidable tax


It is often said that Inheritance Tax is an avoidable tax, but many of us somehow fail to avoid it. Why is this? In our experience, clients’ failure to plan effectively is a result of the following perceived problems: Speed – How often will the thought of having to survive 7 years from the date […]

Read more →


What went wrong with the forecasts?


Reading the tea leaves Investors at year-end are inclined to reflect on the 12 months gone and muse on what the coming year might bring. Aware of this appetite for speculation, themedia tends to feed it with forecasts. These articles can be fun to read, but are even more so a year later. In January […]

Read more →


What should investors make of bitcoin mania?


Bitcoin and other cryptocurrencies are receiving intense media coverage, prompting many investors to wonder whether these new types of electronic money deserve a place in their portfolios. Cryptocurrencies such as bitcoin emerged only in the past decade. Unlike traditional money, no paper notes or metal coins are involved. No central bank issues the currency, and […]

Read more →