EBI Tweets

January, 2019

Wednesday 16th - 13:51

Apparently, Retail Investors "panicked" during the sell-off in December- unlike "Professionals" of course, (CTA's, Hedge Funds and Institutions etc.). Wonder why Individual investors are held to a higher standard that those PAID to invest for others... https://goo.gl/vCs3yA

Wednesday 16th - 11:52

Fees DO make the difference between winning and losing, but Active funds don't seem to have worked this out yet- or they don't want you to know... https://goo.gl/rv31R8

Tuesday 15th - 13:51

Daily market moves, recency bias, and randomness- it's all there to fool us... https://goo.gl/pHoSwP

Tuesday 15th - 11:52

UK Property funds have "re-priced" their offerings causing a loss of 6% as they face increased withdrawals- shades of the chaos of 2016... https://goo.gl/1okfUe

Monday 14th - 13:51

Former Hedge Fund manager believes the bull market could last another decade; in other news, he's re-starting his old (hedge) Fund... https://goo.gl/QurFty

Monday 14th - 11:52

This Weeks' Blog looks at the effect of the Fed's policy decisions on asset Liquidity, which often has more effect than valuations in moving prices in either direction. https://goo.gl/uiNDMh

Sunday 13th - 12:51

After a poor December, the bad news for Quant funds is that FACTOR correlations are rising, even though Individual Stock correlations are not. Is this "crowding" at work? https://goo.gl/BfM9vz

Sunday 13th - 10:57

A good way to counter the "sell everything" mentality when markets get rocky... https://goo.gl/JY54TD

Saturday 12th - 12:51

The last 20 years for US stocks has not been that great, but does this tell us about the next 20? Unfortunately, it does not. https://goo.gl/Znm4eX

Saturday 12th - 10:57

In September, the FCA bring in their "Value for Money" assessments, which could see high Index Tracker charges coming down. But who DOESN'T know about this? Haven't they already switched? If not, will they bother at all? https://goo.gl/qx2wkA

Friday 11th - 13:51

If all else fails, an underperforming Fund manager can always blame other investors; never, it seems, his (or her) own decisions... https://goo.gl/hAHTDj

Friday 11th - 11:52

In aggregate, Investors saw no stock-picking benefits from last years price volatility, which is why they continue to go for Indexing... https://goo.gl/45RcUk

Thursday 10th - 13:51

This survey suggests zero-fee funds won't catch on in Europe, "because managers would still have to find some way to pay for the fee-less funds, which would still cost money to operate". So how do the US firms manage it? Is it Can't or Won't? https://goo.gl/q5M2ex

Thursday 10th - 11:52

The HL Wealth 150 list has been culled to just 61 funds, but Woodford funds and the M&G Recovery fund stay in despite very poor performance whilst Fundsmith is still not in despite good returns. Is it about HL fee income generation rather than performance? https://goo.gl/5ZWLkJ

Wednesday 9th - 13:51

Vanguard retains its status as the fastest growing Fund Manager in the world for the 7th year running, even as overall inflows fell a little- however could they have managed it? Er, its about fees... https://goo.gl/amkfbC

Wednesday 9th - 11:52

Liquidity (as measured by market depth) appears to be drying up. This magnifies price swings and reduces it still further as traders withdraw. Is that why markets are rising (and falling) so fast? https://goo.gl/AdbBTG

Tuesday 8th - 13:51

A new report attempts to quantify the costs of market timing via "timing leakage". Turns out it is c.1-2% per annum. This may be an understatement though- the more volatile the market/asset class, the bigger that leakage will be... https://goo.gl/cnPh9T

Tuesday 8th - 11:52

More warnings about the "dangers" of passive investing from an underperforming active manager... https://goo.gl/DRGtSX, https://goo.gl/p1j8U6

Monday 7th - 13:51

Market "guru?" admits he got the market rally call for December wrong, but he's still bullish; he could be right (this time), but investors may consider tossing a coin- they may reach the same conclusion... https://goo.gl/3w4cZN

Monday 7th - 11:52

This week, in our blog we look at Factor Investing and the Factors we DON'T use... https://goo.gl/F7wa4H

Sunday 6th - 12:51

Vanguard is to liquidate a c.$1 billion fund, but the rationale is rather strange- 'We are adding new products that have investment merit...and eliminating funds that lack a distinct role or strong investment case,' So this fund has no investment case? https://goo.gl/GXffRq

Sunday 6th - 10:57

Best and Worst performing funds for 2018- Precious Metals dominate the winners, whilst the US features prominently amongst the losers. It was an ugly month for most investors though. https://goo.gl/Tvt67E

Saturday 5th - 12:51

More on the "benefits" of Active Management; they can hold cash (they never do BEFORE market falls), and they can "buy low" when markets fall (they never do that either). Thus, they fail to beat the markets almost regardless... https://goo.gl/Qwn3Ts

Saturday 5th - 10:57

Why High Yield investing fails- because its return profile is too similar to that of equities; both suffer at the same time because their risks are correlated. https://goo.gl/bHZzP8

Friday 4th - 13:51

Do different generations have differing investment styles? Not sure one can benefit from generalising about specifics... https://goo.gl/iyRpQH

Friday 4th - 11:52

(For about the 5th consecutive year) Active funds predict that they will outperform Passives in 2019- in other news, the world is flat... https://goo.gl/5JcuaS

Thursday 3rd - 13:51

A prominent Hedge Fund manager has lost 9% in December (and 34% in one year)- another HF with no hedge... https://goo.gl/iKYRLz

Thursday 3rd - 11:52

Are electronic trading programmes the cause of the declines of late? Maybe, but nobody seemed to care much when they were buying "indiscriminately". Strange that... https://goo.gl/3pbMvE

Wednesday 2nd - 13:51

Is there a connection between an asset's popularity and its' long-term returns? Yes, but the relationship is negative, NOT positive as if everyone has already bought it, to whom do you sell? https://goo.gl/iAhEjS

Wednesday 2nd - 11:52

The Year ahead from an Astrological perspective... https://goo.gl/9vNbFk

Tuesday 1st - 13:51

Tuesday 1st - 11:52

When markets fall, there is a clamour to get into cash as each decline looks like the end of the world. But it rarely is and the "safety" of cash often turns out to be a (costly) illusion. https://goo.gl/h317fC

December, 2018

Monday 31st - 13:51

Monday 31st - 11:52

Institutions are not happy with Hedge Fund/Private Equity fees and are changing the way they are charged. Will it be enough to save the fund managers? https://goo.gl/yYvKjX

Sunday 30th - 12:51

Sunday 30th - 10:57

Following market "noise" leads to Short-Term thinking and Short-Term overreaction (and trading costs). Price DOES NOT equal value https://goo.gl/ThNM5M

Saturday 29th - 12:51

Two US Public Pension funds have been "asked" to reduce "illiquid" asset investments and buy Index funds to reduce costs, but the signs are not encouraging- neither funds provided sufficient data to evaluate the performance and costs of the funds... https://goo.gl/qtCZEW

Saturday 29th - 10:57

What is Quantitative Investing? https://goo.gl/p3wHsF

Friday 28th - 13:51

Traditionally, Active Bond managers have been spared the alpha inquisition that has imperiled their equity cousins; this research turns the spotlight on bond managers..... https://goo.gl/1qmgvD

Friday 28th - 11:52

The case for holding cash is nowhere near as strong as it was two months ago- but rear-view mirror investing means that it is now all the rage... https://goo.gl/UJhTdp

Thursday 27th - 13:51

So another struggle begins- ETFs, under pressure to reduce their funds costs now have Index providers in their sights. "Proprietary Indexes" are now on the rise. https://goo.gl/MFtcqr

Thursday 27th - 11:52

Is return persistence over-rated? Maybe, but if markets are volatile, so will be performance. The odds of disappointment are much higher, the more "Active" ones' strategy- why bother? https://goo.gl/cXfDEJ

Wednesday 26th - 13:51

Wednesday 26th - 11:52

Tuesday 25th - 13:51

Tuesday 25th - 11:52

Monday 24th - 13:51

Monday 24th - 11:52

One of the major problems with ESG etc. is the politicisation of voting/investment decisions made by public sector fund managers who feel no direct personal effect of their choices. C Pension beneficiaries have no say in the process but bear the risks. https://goo.gl/CjPhoM

Sunday 23rd - 12:51

"Everything everywhere will crash"- predictions like this are two-a-penny (and worth about as much). Check back on this in 3 months... https://goo.gl/ed1vQ3

Sunday 23rd - 10:57

Many ‘macro’ funds started the year “long” in emerging markets, European stocks, the euro and “short” in the U.S. dollar. Each one of those calls turned out to be wrong. No surprise, then, that they have had the worst year in seven. https://goo.gl/zrhyat

Saturday 22nd - 12:51

Liquidity deserves its place at the investment factor table- best of all, it appears to be additive (i.e. it further boosts returns applicable to another style). But it does require the investor to go against the grain. Do you really NEED to sell? https://goo.gl/SmQTAs

Saturday 22nd - 10:57

The Rumble in the Financial Jungle- Fidelity squares up to Vanguard. Who will land the knock-out blow? https://goo.gl/NDkbAu

Friday 21st - 13:51

Sigh...Active Manager in "don't buy Index funds shock". After all, investor herding is NEVER a factor in Active strategies, as we can clearly see from the Technology stock woes of the last 2 months...hmmmm https://goo.gl/vKsNYP

Friday 21st - 11:52

The Students of Ivy League Universities are no doubt very bright, but the same cannot be said of the endowment funds, who continue to hire their friends to run exorbitantly expensive Hedge Funds. Disappointing returns inevitably follow... https://goo.gl/FMcruF

Thursday 20th - 13:51

Investing in "Factors" does seem to work, but not ALL the time and everywhere- a good discussion here of all the issues involved.... https://goo.gl/1jACF1

Wednesday 19th - 13:51

An Academic study claims that high-cost funds actually do better than low-cost versions. But on closer inspection, the study tells us much more about academics and their detachment from the real world of investing... https://goo.gl/5vFrV8

Wednesday 19th - 11:52

A primer on Securities lending- risks and rewards; Index funds increasingly use this to boost returns. There ARE risks, but not as many as one might imagine. https://goo.gl/HvTEwB

Tuesday 18th - 13:51

On average, fees on active equity funds have dropped by 18% since the introduction of RDR some five years ago, despite fee compression across the board, the gap between active and passive fund fees remains wide. https://goo.gl/aLwnUR

Tuesday 18th - 11:52

Once again, Index funds are touted by Active proponents as bring the cause of the next market crisis- shame they didn't see the Index trend coming (and recommend it as a strategy) beforehand. It rather undermines their credibility... https://goo.gl/LRCALP

Monday 17th - 13:51

Whoops- US Pension funds piled into EM, just as the asset class tumbled, performance chasing and market timing once again are a toxic mix; they are invested "for the long-term" apparently. Looks like they will need to be... https://goo.gl/WQk5VH

Monday 17th - 11:52

Active managers have not provided better downside protection in equity bear phases in South Africa over the last five years- this corroborates the experience everywhere else too.. https://goo.gl/6Z5TvA https://goo.gl/YxBVR3

Sunday 16th - 12:51

A recent article claimed that Indexing is "terrible for our economy"- self-serving indeed, but here's a good riposte to the "logic"... https://goo.gl/s1HKSw

Sunday 16th - 10:57

Opacity, high fees, and conflicts of interest- in most Industries you would be out of business p.d.q (pretty damn quick), but the UK Investment Consultancy business seems to be thriving. Is that about to change...? https://goo.gl/fTfZ9c

Saturday 15th - 12:51

Extreme fake news...but maybe that explains the Brexit debacle... https://goo.gl/bwZUo4

Saturday 15th - 10:57

Short-term, Fidelity appears to be winning the Index fund price war, but its a marathon, not a sprint and the odds still favour the latter (as they have no shareholders to appease). But if the price is right we would always consider the former... https://goo.gl/BKHLGN

Friday 14th - 13:51

Could JPM break ranks and launch the first fee-free US ETF? Competitors in the space charge 4bps (0.04%)- to gain traction, they might need to go to zero... https://goo.gl/LjiHb3

Friday 14th - 11:52

The collapse of GAM goes on- scandal, sackings etc. have led to massive fund outflows, putting the firm's viability at risk. For investors, it is another example of hidden risks becoming very visible all at once. https://goo.gl/M5ffAu

Thursday 13th - 13:51

Bogle's recent warnings on Index funds mainly refers to the concentration of power within the Index fund business itself and the effect on Corporate governance; but even if true, does this negate the beneficial effects for investors of low cost funds? https://goo.gl/tKRzEH

Thursday 13th - 11:52

The SEC has decided that Passive funds pose a threat to "investors"- but what they really mean is it poses a threat to Wall Street... https://goo.gl/3K4fzs

Wednesday 12th - 13:51

Far from benefiting from market volatility, Hedge fund returns are merely now reflecting it..... https://goo.gl/zecdek

Wednesday 12th - 11:52

The CMA has proposed "sweeping" changes to the Investment consultancy market, to challenge the dominance of the "Big Three"- we await results... https://goo.gl/TNCc51

Tuesday 11th - 13:51

This is old research, re-examining old market canards- whilst markets have beaten T-Bills over 90 years, individual stock returns are heavily "skewed". 4% of the sample accounted for ALL the net wealth created. Index funds own all of the future winners... https://goo.gl/MsoZq4

Tuesday 11th - 11:52

Is the go-to strategy of the last decade failing? Buy the Dip no longer seems to work- whatever will Hedge funds do now? https://goo.gl/p7Wuui

Monday 10th - 13:51

An Amundi survey picks out Hedge Funds and UK equities as being the least favoured by European pension fund managers. So. UK Hedge funds may not see a great deal of love from investors then... https://goo.gl/LGFdEV

Monday 10th - 11:52

This week's Blog looks at the shares that won't get into ESG/SRI funds to see if it is having an effect on current valuations- the evidence is mixed. https://goo.gl/65Ks7f

Sunday 9th - 12:51

Absolute Return and UK bonds saw the biggest outflows since the Brexit result- note the money has (once again) left the active space, with Woodford's equity income fund losing another £152 million. AUM now halved since May 2017. https://goo.gl/6o1P5c

Sunday 9th - 10:57

Is your Bond fund manager betting the farm (your farm!) on low credit quality companies? Time to look at WHY they are beating their Benchmarks... https://goo.gl/Hw43Fy

Saturday 8th - 12:51

"Project Fear" has been applied to Active Manager criticisms of ETFs - with equal success to that of Brexit so far..... https://goo.gl/Epj2Bk

Saturday 8th - 10:57

Natixis, an Active Management firm) do regular "surveys" and each time they point to a move away from Passive investing and back to Active Managers; one has to wonder who they actually "survey"? The data on fund flows says the exact opposite. https://goo.gl/BrkVB6

Friday 7th - 13:51

Commercial Bank-run funds underperform those run independently according to this study, partly as a result of inherent conflicts of interest; though in the US they are losing market share, they still constitute a large portion of the AUM in other markets. https://goo.gl/BPycbU

Friday 7th - 11:52

We're more Green than you- some ESG/SRI funds are being ridiculed as "cuppa-soup" products by other fund managers. https://goo.gl/QnkMPV

Thursday 6th - 13:51

A Brexit road-map. As if it helps... https://goo.gl/cUsWJh

Thursday 6th - 11:52

Once upon a time, fund flows would slavishly follow (past) returns, but the rise of Indexing has helped investors to become more "strategic", rather than impulsive in their choices. Another hurdle for Active fund asset gatherers... https://goo.gl/A5j6xA

Wednesday 5th - 13:51

Statement of the obvious alert- "free" investment products come with a cost apparently; "free" trading leads to over-trading. It doesn't HAVE to; that's where investment discipline comes in and those predisposed to Indexing are more likely to have it https://goo.gl/f47QPx

Wednesday 5th - 11:52

The problem of picking funds faces the immutable "law" of reversion to the mean- past performance can lead you in EXACTLY the wrong direction... https://goo.gl/sQUGPL

Tuesday 4th - 13:51

Hedge Funds have been steadily reducing their market exposure throughout the year. Apparently, their 2018 returns could have been worse, though its hard to see how. Are they not supposed to be market timers? https://goo.gl/uVbkus

Tuesday 4th - 11:52

Strange- Bogle now warns about over-concentration in Index funds, singling out Fidelity's zero fee structure. Doesn't that mean there are FOUR entrants now? How many does he want? https://goo.gl/kWEUtG

Monday 3rd - 13:51

Despite "chronic underperformance" Investors are reluctant to abandon Active managers, citing the recent rise in volatility, according to Goldman Sachs. If so, they are showing themselves to be impervious to evidence (and reality)... https://goo.gl/YMASJe

Monday 3rd - 11:52

This week's Blog looks again at the predictive failure of "experts" and ponders some reasons for their perpetual inaccuracy. https://goo.gl/ADnwbD.

Sunday 2nd - 12:51

Jack Bogle is forecasting average 4% annual returns for equities and 3.5% for bonds in the next ten years. This article explores the implications for investors if this subdued forecast comes to pass. https://goo.gl/KKQ4y9

Sunday 2nd - 10:57

Larry Swedroe asks are Corporate Bonds worth it? If you want higher returns on a risk-adjusted basis, you are better off just buying more equities. Both entail similar risks, which occur at the same time, but the return on the latter is much higher. https://goo.gl/mgKswY

Saturday 1st - 12:51

The marketing of Fidelity's zero-fee funds- they are there for everyone- appears to be paying off (6.5 billion times). https://goo.gl/w2FQFA

Saturday 1st - 10:57

If you pick a sector that has dropped sharply in the last year (Oil, Tech), Hedge Funds have been (over) invested in it. Forget the huge fees, (not that you can!), they don't seem to be able to actually make money... https://goo.gl/xqXwiw

November, 2018

Friday 30th - 13:51

One approach to market volatility- drip-feed money in gradually; stay diversified and most importantly, stay patient. No need to (over) react or try to time markets..... https://goo.gl/Q2kD14

Friday 30th - 11:52

More definitional problems for ESG investors- can/should one buy Gilts? Governments fund all sorts of things that many ethical investors may find tough to swallow, (Arms, Nuclear power etc.) https://goo.gl/qTbii7

Thursday 29th - 13:51

Vanguard on the sources of ETF liquidity. https://goo.gl/kaLCvj

Thursday 29th - 11:52

Unintended consequences- in the wake of the Fidelity zero -fee funds launch, Institutions are now asking fund managers- what about us? Zero management fees for them too? https://goo.gl/zHfSth

Wednesday 28th - 13:51

For all the market angst, the number of 1% daily moves in the S&P 500 in 2018 is almost EXACTLY average; this is what a NORMAL market looks like. https://goo.gl/LiAYUg

Wednesday 28th - 11:52

As part of an SL/Aberdeen fund merger, Investors are expected to pay for the costs incurred thereby (c.1%) even though they were not given the option to refuse. Time to vote with one's feet? https://goo.gl/XB5M8q

Tuesday 27th - 13:51

So far this year, there has been no place to hide for asset managers... https://goo.gl/Xq6fkz

Tuesday 27th - 11:52

The range of returns between the best and the worst performing UK funds appears to be getting wider; FTSE All Share +23.5% in the last years, implies a LOT of funds are going to disappoint investors. Time for a cull? https://goo.gl/RfJLaQ

Monday 26th - 13:51

Investor sentiment towards UK equities continues to sour; according to nearly a fifth of those surveyed. prices could fall ANOTHER 10%- are we getting close to a bearish consensus? https://goo.gl/z8gcai

Monday 26th - 11:52

This week's Blog looks at Bond "Yield to Call" and implications for the investor if no "Call" is forthcoming. https://goo.gl/vfAsGF

Sunday 25th - 12:51

It's not been a good year for anyone- or anything! https://goo.gl/2jwss6

Sunday 25th - 10:57

Vanguard has amassed £1 billion in AUM in the UK in just 18 months, eclipsing most of its rivals; worryingly for the competition, they call it "a good START". Younger investors represent 43% of the funds and they ARE the investors of tomorrow... https://goo.gl/GnTqDV

Saturday 24th - 12:51

The writer if this article blames Algorithms for recent market woes, but is he not talking about liquidity? If there were plenty of buyers, the declines would be much smaller; lower liquidity= more downside; sellers have to hit the bids that DO exist.... https://goo.gl/ArFhWj

Saturday 24th - 10:57

Since 2009, market performance has hidden from view the impact of falling fund management fees- now that markets are struggling, the tide is going out. Fund managers may be left beached... https://goo.gl/AL7UGP

Friday 23rd - 13:51

According to Moody's Passive fund's share of total AUM will reach 27% by 2025, in their "fast-case" scenario. That's an annualised growth of 1.36% p.a. Not the complete takeover of markets that Active Managers are fond of warning us about... https://goo.gl/fc3QZN

Friday 23rd - 11:52

This survey reveals the extent of Investor's conflicting attitudes to risk, returns costs etc. Apparently, they think they need 9.8% annual returns to reach their goals, but shy away from "risk". Someone is going to be REALLY disappointed... https://goo.gl/ajQQSA

Thursday 22nd - 13:51

For the $1 million portfolio retiree, even leaving the workforce at precisely the wrong time is not as disastrous as it might seem. But you DO need $1 million in the pot to weather the storm it seems... https://goo.gl/Pv6wML

Thursday 22nd - 11:52

There are 50,000 stocks tradeable on Global Exchanges but 3.7 MILLION Indices to track them- in the last year alone 438,000 NEW Indexes were created. Easy money for S&P, MSCI and FTSE. https://goo.gl/KvhS2E

Wednesday 21st - 13:51

Amid much FCA hand-wringing about DB transfers, an FOI request reveals that their OWN staff are rushing for the exits from their own Scheme. The value of transfers out has more than trebled in the last year alone! https://goo.gl/JKYoJM

Wednesday 21st - 11:52

How useful are Analysts' forecasts? Not much it seems, but they CAN make share prices move- so, despite the evidence, investors do still follow them. (Notice the continual over-optimism...) https://goo.gl/Hv3sgq

Tuesday 20th - 13:51

If you thought all Momentum strategies were created equal, you may be mistaken; there are two distinct types- Cross-Sectional (CS) and Time Series (TS) and they do things (slightly) differently- but are they distinct sources of momentum returns? https://goo.gl/ze2UKn

Tuesday 20th - 11:52

Last month's Tech collapse was led by selling from ...Indexers...ETF's...Passive investors...? No, it was mostly Hedge Funds. Another Active manager myth about forced Passive selling debunked. https://goo.gl/KFR2sK

Monday 19th - 13:51

US Investors appeared to be day-trading their pension funds last month. The only consequence was likely to make their situation worse, not better. Emotional investing never yields results, but people seem to need to learn the hard way... https://goo.gl/etY3uS

Monday 19th - 11:52

This week's Blog looks at the recent US Dollar strength and why its back in the spotlight. https://goo.gl/qGVoqy

Sunday 18th - 12:51

Performance fees and the "market for lemons". Will they make any difference in the final analysis? Will clients be prepared to pay them even when the fund manager LOSES them money? https://goo.gl/75Vkt3

Sunday 18th - 10:57

Overdrawn? According to this survey, 53% of investors currently in Drawdown have a real risk of running out of money during retirement. This risk is getting greater; solutions are many but none are especially palatable... https://goo.gl/r4XpVz

Saturday 17th - 12:51

Peak insouciance? While Euro politicians talk of "empires", the economy remains on life support; political dreams continue to override realities... https://goo.gl/5ouxRC, https://goo.gl/2a8wgy

Saturday 17th - 10:57

What are the potential routes to Brexit (or not)? Still plenty to play for... https://goo.gl/oPPLm9

Friday 16th - 13:51

A Swedish (former) Hedge Fund manager has seen the light! He's closed his underperforming fund and re-launched as a low cost Passive/Rules-based fund. But will he get any takers amongst HNW Individuals/trust funds? We shall see soon enough. https://goo.gl/U15ihf

Friday 16th - 11:52

MiFiD2 will force a new level of cost disclosure on asset managers. In a bull market, charges may be easier to "bury", but how will clients react to finding out that they have made less than their asset custodians? https://goo.gl/QKji14

Thursday 15th - 13:51

Many Pundits claim that one can have all the up-side of markets, with no downside- here are some of the reasons to "don't believe the hype"... https://goo.gl/KQ6Za8

Thursday 15th - 11:52

Equally weighting an Index gets round one potential source of risk, but in the process creates another. There is no silver bullet in Indexing- risk (sector, stock or market) is NEVER destroyed, merely transformed... https://goo.gl/uDh1pL

Wednesday 14th - 13:51

Aberdeen has "overhauled" their Asian Small Companies investment trust- cutting fees by 0.04% (to 0.96% p.a.). Looks like a marketing gimmick... https://goo.gl/cFUstW

Wednesday 14th - 11:52

In ONE MONTH, (October), the average UK DB scheme deficit rose by £69 billion as equities fell and bonds rose- it's no wonder that firms are getting out if this "business" as fast as they can... https://goo.gl/11FkDm

Tuesday 13th - 13:51

" Low Vol" stocks have beaten the market on occasions (with lower drawdowns too), but what if they are REALLY just a play on Interest rates? Things could change rapidly, especially given the popularity (and thus crowded nature) of the strategy. https://goo.gl/ZJjWHM

Tuesday 13th - 11:52

Confirming some suspicions, not ALL investors are willing to sacrifice returns for Ethical investment- those with the highest earnings were more likely to do so, but even they are choosy about which products they support. A bear market will test them... https://goo.gl/6m9a3k

Monday 12th - 13:51

Securities Lending has gone mainstream- $6 billion in revenue has been generated thereby, in the first 6 months of 2018- for a Buy and Hold Investor, it is a synthetic dividend (as long as the fund house doesn't keep it all!) https://goo.gl/QxN2mE

Monday 12th - 11:52

This week's Blog looks at the Citywire report on SJP- it's charges and returns do not inspire, but many still use them -why? https://goo.gl/ZaBPPC

Sunday 11th - 12:51

Doing nothing in investment terms is a vastly under-rated activity; though not buying or selling doesn't mean not thinking or watching, but that better opportunities have not (yet) arrived... https://goo.gl/ub4xRN

Sunday 11th - 10:57

Would Performance Fees improve the situation for Investors? It may not make much difference to returns, but at least the incentives for Principals and Agents would thus be aligned, but most managers are reluctant to put their incomes where their mouths are https://goo.gl/BXv1A4

Saturday 10th - 12:51

Closet-Indexing suits the (Active) fund management firm nicely- clients don't get spooked by large underperformance, so the management fees continue to roll in. It is by far the safest option for the vast majority of average fund managers. https://goo.gl/gXRaUn

Saturday 10th - 10:57

The boss of Aberdeen/SL avers that the active management industry has been "hit hard" by fee compression. Later on, the article mentions that profit margins are at 40%. A LONG way to go then... https://goo.gl/vUuCWT

Friday 9th - 13:51

Another Corporate fraud, which leads to another scandal and a rights issue to bail the firm out- fund managers pledge "to learn" the lessons- but will they? "Corporate Governance is high on our list"- where was it beforehand? https://goo.gl/3yYFFe

Friday 9th - 11:52

Will there be a panic-strewn stampede for the door by Index investors if markets fall? There might be, but that would be a new event- ALL past panics have been led by Active investors (and this October was no different)... https://goo.gl/oHigGb

Thursday 8th - 13:51

Whoops- Vanguard suffers a "tech outage" to the chagrin of its US clients- this is the second time in a month, this time due to a system "up-grade". https://goo.gl/Y5jB2X

Thursday 8th - 11:52

Still more bad news for Hedge funds- the Month-to-Date returns table is the wrong way up! https://goo.gl/93fgaA

Wednesday 7th - 13:51

Analysts MAY know a company inside out- but that doesn't mean they know WHEN to buy or sell. "I was never paid for the accuracy of my picks and neither was the research team I headed". Good job too... https://goo.gl/uhrkVP

Wednesday 7th - 11:52

Active Manager performance persistence continues to shrink as Alpha becomes a vanishingly rare commodity- why? It's the paradox of skill... https://goo.gl/2RtpPK

Tuesday 6th - 13:51

Not just retail investors (the so-called "dumb money"), but "smart money" also suffer from behavioural biases- and so make the same mistakes... https://goo.gl/XSyxh4

Tuesday 6th - 11:52

Now HL joins the bandwagon to cut manager fees- sob, sob, will it ever end? https://goo.gl/jM5tkZ

Monday 5th - 13:51

Active Managment needs to look inside rather than out to explain their fall from grace- there are just too many of them... https://goo.gl/6vF6nc

Monday 5th - 11:52

This week's Blog looks at the "Fed Put" and asks is it still operative or has it expired! https://goo.gl/k5bqDv

Sunday 4th - 12:51

Vanguard's CIO explains why ETFs are NOT the cause of market volatility. We know this, but Active Managers appear to be out of the loop... https://goo.gl/uQnFWc

Sunday 4th - 12:51

September's UK Fund flows show that nothing much has changed- another £ billion into Tracker funds by retail investors- if Active Managers squint very closely, they might just see a trend... https://goo.gl/KDA1Lb

Saturday 3rd - 12:51

Confusion in Active Land- "We have a solution that is designed to beat passives by construction and as such, it is designed to also beat actives over time.” Low Tracking Error, Fees and Transaction costs- sounds like an Index fund to me... https://goo.gl/CxArZf

Saturday 3rd - 10:57

The 500 largest asset managers collectively run $93.7 TRILLION as of the end of 2017. Here's the Top Ten... https://goo.gl/kPXi6P

Friday 2nd - 13:51

"Differing selection criteria mean you can have totally different performance even with a similar philosophy.”- which is why some "Value" funds do better than others. Look closely at the label- you may not be buying what you think... https://goo.gl/31gYCt

Friday 2nd - 11:52

Putting out Fiduciary Management deals to tender has led to a reduction of 20% in pension scheme fees- which tells us all we need to know about how overpriced they were previously... https://goo.gl/8yDrBR

Thursday 1st - 13:51

Given the choice between (fully) funding their Corporate pension schemes and paying out Dividends, Corporate Executives are going for the latter. Qui Bono? https://goo.gl/yq5uje

Thursday 1st - 11:52

The Stock Market's Law of Gravity- a.k.a. Mean Reversion explains why winning funds/shares etc. start to lose (and vice versa). https://goo.gl/p44baU