PA ANALYSIS: Time to put an end to rip-off passive funds
Active managers are under pressure like never before to either justify or cut their fees, but have passive funds been getting an easier ride than they deserve as a consequence?
Active managers are under pressure like never before to either justify or cut their fees, but have passive funds been getting an easier ride than they deserve as a consequence?
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Tilney Bestinvest’s clients continued to put money into US tracker index funds in October despite markets being spooked by the potential outcome of the presidential election.
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With returns from European equities distinctly harder to come by than during the QE inspired climb last year, active funds falling short in active share terms are going to find investors less forgiving.
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BlackRock has slashed the charges on some of the trackers in the BlackRock Collective Investment Funds range by more than half.
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With the FTSE 100 and S&P 500 having breached record highs this year holders of tracker funds have the right to feel ever so slightly nervous, still interest in passives is booming.
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Fidelity will next month launch a series of equity-based passive funds with its range now charging ongoing fees as low as 0.09%.
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Halifax, Legal & General, Swip and Virgin are among those under fire for fielding high cost UK trackers, which can sting investors for up to ten times more than the lowest-priced funds.
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Assets under management of funds of funds, tracker funds and ethical funds reached record levels in 2012, despite a decline in net retail sales across the board, data from the Investment Management Association (IMA) revealed.
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RLAM's new move into passive equity management is nothing of the sort having run quants strategies for more than a decade.
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On one hand were told that groups are feeling stretched and there are too many funds, on the other were seeing new names and innovative products… especially from the French.
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Sales of trackers and funds of funds both hit record levels in Q3 as investors react to market volatility and economic uncertainty.
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