Christmas message.
TRANSCRIPT:
Greetings from Birmingham, home of The Evidence-Based Investor.
It’s not been easy these last few years for those of us campaigning for greater transparency in asset management.
There were times when we felt no one was listening.
When, for example, my colleagues and I produced our documentary Passive Investing the Evidence for Sensible Investing TV, people just didn’t seem to get it, or certainly not those outside the United States.
There was more interest in the follow-up film, How to Win the Loser’s Game, but plenty of opposition t00, particularly from those with vested interests in maintaining the status quo — the big fund houses, platforms, brokers and the trade press.
But 2016 has been a breakthrough year. There’ve been so many positive developments.
There was the Fiduciary Rule in the United States. Even if the new administration scales it down, there’s now much greater awareness of the value of having a fiduciary adviser.
The new European directive MiFID II will force fund management companies in member states to disclose all the fees and charges that consumers are paying.
And here in the UK, the interim report by the Financial Conduct Authority on its study into competition in asset management warns of a catalogue of problems right across the industry.
In fact that report by the FCA pretty much endorses everything that we and other organisations like the True and Fair Campaign, ShareAction and the Transparency Task Force have been saying for so long.
For example: “actively managed investments do not outperform their benchmark after costs”; the true cost of using them is hidden from investors; past performance data is often misleading; many funds are sold as actively managed funds but in fact more or less hug the index; investment consultants are seriously conflicted; and advisers aren’t doing enough to promote cheaper, passive funds.
Also, this year, awareness has grown among investors about all of these issues.
The United States has been ahead of the game for several years now, and there, assets have been flowing out of active, and into passive, funds faster than ever before.
But all over the world, the media in particular is waking up to the very poor value that investors have received for far too long.
It’s no time for complacency. We’re dealing a hugely powerful industry here, which will fight tooth and nail to delay or water down any proposals for tighter regulation.
It also has a gigantic PR and marketing budget which it will continue to use to create the impression of an industry that is adding value.
Rest assured, however, my colleagues and I at The Evidence-Based Investor and at Regis Media will continue to tell investors the truth about investing.
Whatever part you play in this industry, we’d like to hear from anyone who wants to support us in that goal.
Thank you to everyone who has read — and of course shared — our blogs, videos and audio podcasts in 2016.
Together we’re helping to change the way the world invests.
From all the team here in Birmingham, have a safe, happy and restful Christmas.
And see you again in 2017.
ROBIN POWELL is a freelance journalist and the founding editor of The Evidence-Based Investor. Based in Birmingham, England, he founded Ember Television and Regis Media, and he specialties in helping disruptive financial firms to grow. He also campaigns for a fair, transparent and sustainable investing industry. You can follow him on Twitter at @RobinJPowell.
Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.
