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
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.
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.
Legal & General Investment Management has said its new index fund focused on global listed infrastructure stocks will offer investors income, inflation protection and diversification.
Vanguard has launched two global UCITS corporate bond funds.
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.
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.
Amundi is targeting carbon footprint-conscious investors with the launch of three low-emissions investment vehicles.
Old Mutual Wealth has revealed almost half of investments held through WealthSelect are in pension accounts, as the model portfolio service surpassed £1bn AUM.
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.
The latest IMA statistics indicate record inflows into passive funds as investors clearly signal their focus on cost and performance.