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Introducing our new portfolio review service for professionals
The vast majority of pensions funds, charities, endowments and other institutional portfolios have underperformed the market for decades. The way to stop the rot is to have an independent portfolio review, reduce fees and complexity, and increase diversification. From today, that’s precisely what TEBI is offering. As anyone who’s read The...
Is there a whelk in your fund portfolio?
By LARRY SWEDROE You may never have heard of a whelk. However, this little ocean creature can ruin an oyster’s day. A whelk looks like a conch, only a bit smaller. It’s equipped with a tentacle that works like an auger....
Will ETFs overtake mutual funds?
It’s 28 years since the first exchange-traded fund was launched, and they’ve grown from strength to strength. It’s a trend that shows no sign of abating. Assets managed by ETFs jumped by more than a third during 2020, with record net investor...
Could the Woodford blow-up have been prevented?
A new book on the Neil Woodford scandal is about to be published. Opinions are divided on exactly what went wrong, but the book, When the Fund Stops, provides some helpful clues. In Part 1 of his interview with Robin Powell, the book’s...
A mistake that costs investors $15 billion a year
New research suggests that active fund investors are typically confusing “fake” alpha (i.e. outperformance that’s simply down to factor exposure) with “true” alpha (i.e. alpha produced through genuine skill). It’s an expensive mistake to make, because passively managed factor funds are readily...
Does regression analysis work for factor exposure?
Regression analysis dates back to the early nineteenth century, and yet it’s still commonly used to explain investment performance. But analysing the role that exposure to different risk factors plays in performance is extremely complex. So, does traditional regression analysis work in...
We deceive ourselves about financial incentives
By JOACHIM KLEMENT In the world of business, I don’t think there is any job where in some instances the incentives for an employee or business owner are not in conflict with the ethically right thing to do. Doctors have an...
