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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...
Why owning losing stocks doesn’t matter
A common criticism of index funds is that they own losing stocks as well as winners. It’s true, they do. But does it actually matter? Every investor loves a winning stock. As for losing stocks, most investors, given the choice,...
Style drift — a lesser-known downside of using active funds
One of the downsides of using actively managed fund is what’s called style drift. It’s a widespread phenomenon, and, unless you’re looking out for it, the danger is it can give you a nasty surprise. Many of us learned a...
Should you go all in on equities?
For at least the last 70 years or so, there have been two guiding principles of portfolio management. The first is that you should spread your risk between different asset classes, with the general consensus being that those should be principally...
Financial advertising can seriously harm your wealth
It’s hard to escape financial advertising. The biggest brands seem to get their name all over the place, from the side of taxi cabs to train station billboards. They sponsor arts and sporting events and take out full-page adverts in newspapers...
Why do active managers struggle to replicate past success?
In evaluating fund performance, it’s extremely hard to distinguish genuine, repeatable skill from random chance. Investors are constantly shown examples of funds whose managers appear to have demonstrated superior expertise. But we forget one very important thing: at any one time,...
Don’t take investment advice from politicians
Investing is a classic example of an activity which everyone seems keen to give an opinion on. The problem is that everyone has their own reasons for expressing the views that they do, and, almost invariably, there’s an element of self-interest...
