Tyndall’s Wintle: The hidden dangers of passive investing
Tracker funds are seen as the low-risk route to investing, but Felix Wintle says this assumption may need a re-think
Tracker funds are seen as the low-risk route to investing, but Felix Wintle says this assumption may need a re-think
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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.
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Fidelity International has stepped up the passives price war with the launch of six low cost cross-border equity index funds and the reduction of pricing on three existing UK-domiciled index funds.
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Legal & General Investment Management has said its new index fund focused on global listed infrastructure stocks will offer investors income, inflation protection and diversification.
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Vanguard has launched two global UCITS corporate bond funds.
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Sniping at passives may be passé, but that still doesn’t explain the benefit that dyed-in-the-wool active fund groups achieve from fielding substandard tracker funds.
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Post-RDR, the passive and active camps have both moved on, with debates around active share, index biases and cost all coming to the fore in the spirit of innovation.
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Amundi is targeting carbon footprint-conscious investors with the launch of three low-emissions investment vehicles.
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Old Mutual Wealth has revealed almost half of investments held through WealthSelect are in pension accounts, as the model portfolio service surpassed £1bn AUM.
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While Royal Dutch Shell’s £47bn acquisition of BG Group is something of super-sized deal for the FTSE, it promises to be a weighty problem for active and passive funds alike.
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The latest IMA statistics indicate record inflows into passive funds as investors clearly signal their focus on cost and performance.
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