Vanguard has faced criticism for soaring duration in its fixed allocation Lifestrategy range, but investment strategist Ankul Daga is doubtful tactical decisions made by active managers will deliver superior results.
The size of a client’s wealth is important in helping advisers decide which investment strategies to use, but it is not the only factor to consider.
Financial advisers have backtracked on plans to decrease their active exposure, instead marginally increasing allocations, according to a survey by Natixis Investment Managers.
Investor interest in the UK market took a dive following the EU referendum, but recent passives fund data reveals sentiment could be shifting, with a mammoth $521m weekly inflow in mid April.
Active bonds suffered €7bn in outflows along with active commodities and convertibles, hitting Europe’s asset management industry hard in February.
The most expensive passive exposure to the FTSE All Share comes through the Virgin UK Tracker, which charges 1%. But how much could investors save in fees by going with the five cheapest funds on offer?
Three-quarters of the assets Aberdeen Standard Investments will be managing for Virgin Money sit in the UK’s costliest tracker.
Over a third (38%) of UK gilt funds have been awarded FE’s five passive crown rating, while index-linked gilts and sterling corporate bond funds received none.
The active versus passive debate could be history by 2025, according to Blackrock’s Joe Parkin.
Active funds remain advisers’ top product of choice when building portfolios after research found more than half invested less than 20% of client money into passive funds.
Europe’s passive funds will be given a boost in 2018 at the expense of active funds thanks to Mifid II’s drive for cost transparency, according to research firm Cerulli Associates.
The unbundling of research costs under Mifid II will increase the level of risk in passive investing, SVM’s Colin McLean has warned.
