EBI Tweets

August, 2018

Friday 31st - 13:51

The agency problem holding back pension funds https://goo.gl/W9xkbk

Friday 31st - 11:52

The rise and rise of factor investing https://goo.gl/hMF5BD

Thursday 30th - 13:51

Using complicated investment strategies may make investors feel like they are in control and boosting performance, but it is just an illusion. The Best Investment Strategy Is Simple. https://goo.gl/xaUWj1

Thursday 30th - 11:52

Is the value premium still alive and well? https://goo.gl/sWQiRY

Wednesday 29th - 13:51

Financial crisis haunts clients 10 years later: Investors today are more likely to work with a finance professional. https://goo.gl/JzDem5

Wednesday 29th - 11:52

The best strategy of the record-long bull market? Not trying to beat it https://goo.gl/35BqAm

Tuesday 28th - 13:51

Can you imagine a world in which mutual-fund managers pay investors an annual fee – rather than the other way around? That may not be as far-fetched as it sounds https://goo.gl/x1PVXd

Tuesday 28th - 11:52

Hedge fund's performance has sagged again, as their long positions go nowhere, while their short positions have surged. The "smart" money once again showing its value- though you will have look very hard to see it... https://goo.gl/STHHZ3

Monday 27th - 11:52

This week's Blog looks at the rise of the Tech Giants and how they might have got there. https://goo.gl/esRQ1a

Sunday 26th - 12:51

Fund manager skill DOES exist, but it's not enough to offset the costs. In any event, if it is demonstrable, it is the manager that reaps the rewards, not the client. https://goo.gl/sn6RnE

Sunday 26th - 12:51

To much fanfare, Active managers beat their passive brethren in the first half of the year. But over the last 12 months, it is the same old dismal returns story... https://goo.gl/4bzVcv

Saturday 25th - 12:51

As the US bull market reaches its longest ever stretch, Japan's Government pension fund has expanded its (US) equity holdings to $193 billion. It now NEEDS the bull market to continue..or else. https://goo.gl/zRcvsT

Saturday 25th - 10:57

Another study questions whether Investment Consultants actually provide any value via their recommendations. https://goo.gl/eeYLtm

Friday 24th - 13:51

The benefits of re-balancing are many and varied, but one of the most important is that it avoids behavioural traps that ensnare the unwary... https://goo.gl/d6ACfu

Friday 24th - 11:52

The recent struggles of "Bond King" Bill Gross reminds one of Neil Woodford and you can feel sympathy for them, but the pain is much more real for the investors. Why do they put themselves through it? https://goo.gl/Jx4WMz

Thursday 23rd - 13:51

A lowdown on the history of the CAPM, the Efficient Frontier and asset allocation. https://goo.gl/GcjcpU

Thursday 23rd - 11:52

Fear of being wrong (even for a short period), a.k.a "career risk" explains why so many active managers hug their Index benchmark. But it is the investor that is shortchanged... https://goo.gl/7g1Xv2

Wednesday 22nd - 13:51

Bestinvest's list of "dog" funds now has £33.6 BILLION in assets, versus £6.4 billion in the last report. The low point reflected the market highs of January 2018, which rather undermines the "we'll do better in a bear market" case. Invesco feature heavily https://goo.gl/Lr8kBM

Wednesday 22nd - 11:52

A good refutation of a Sky Business "expert" on how Index funds will do poorly in the next market decline. Index funds don't sell, because they cant-they buy more. Net fund closures were seen in Active funds, so who was "exposed"? https://goo.gl/RySqtz

Tuesday 21st - 13:51

Multi-Asset funds, according to this study, "subtract from returns", versus a simple equity/bond portfolio mix. Costs are a factor, but it seems incompetence is a major contributor too. https://goo.gl/RH2uwF

Tuesday 21st - 11:52

Low, and even Zero fees won't help fund investors who are determined to make the same behavioural mistakes as before. Over-trading, overconfidence, and ill-discipline will still take their toll if you let them. https://goo.gl/6uVNix

Monday 20th - 13:51

A short video that tells how Active Management is selling a "story", in which investors are fooled into believing that there is "holy grail" out there; financial services is one of the only areas in which cost and quality of outcome are inversely related. https://goo.gl/JgmZAf

Monday 20th - 11:52

This week's blog looks at the economic crisis engulfing Turkey (and tries, but fails to avoid using the usual puns). https://goo.gl/2zYrsC

Sunday 19th - 12:51

It's August and time to head for a relaxing time on a quiet,secluded Caribean beach https://goo.gl/fo6jPM

Sunday 19th - 10:57

Index Trackers control just 18%of the Global Stock markets (which undermines the "Passive leads to market inefficiencies" hyperbole); Active managers will almost certainly survive, just in a different form (and on a MUCH smaller scale). https://goo.gl/YyN5vU

Saturday 18th - 12:51

Competitors are asking "whats the catch?" with the Fidelity zero fee fund. Of course there's a "catch"! You could not expect to be charged £5 to fly to China. They are not charities... https://goo.gl/LgC8xA

Saturday 18th - 10:57

HL does it again; having underperformed by 5.79% p.a. for over 3 years, a fund is removed from its "favoured" list, only to outperform once it is pushed out. https://goo.gl/yLLW1S

Friday 17th - 13:51

Local Authority pension funds are coming under increased pressure to sell Tobacco stocks, as financial experts, such as the CE of ASH, tell them how they should invest. But if your pension doesn't depend on return/income etc. it's not a concern... https://goo.gl/p3uXGf

Friday 17th - 11:52

No two bear markets are alike, so a sector winner in one downturn is unlikely to be the best in the next. A loss of market confidence will produce new losers each time. Stay low cost and diversified to weather the storm... https://goo.gl/xJdw3W

Thursday 16th - 13:51

Differing "Factor loadings" can make a significant difference to fund's risk profiles, even if they ostensibly target that same factor. Be sure you know what (as well as why) you are buying... https://goo.gl/xepvKm

Thursday 16th - 11:52

Morningstar has updated Active Managers' "success rates" for end-June 2018. It isn't getting better; in fact, it seems to be getting worse and this week's price action will not help matters. https://goo.gl/kXaEf6

Wednesday 15th - 13:51

As part of the Fidelity zero fee fallout, some US Mutual fund outflows appear to be accelerating. This story has got a lot further to run... https://goo.gl/TDxikc

Wednesday 15th - 11:52

Why "Time" (and NOT timing) is the Investors best friend in markets. Compounding does the heavy lifting without any input from us. Stick with it. https://goo.gl/fXQJpk

Tuesday 14th - 13:51

The Capital Asset Pricing Model (CAPM) is the basis of modern finance (and the key to our portfolio construction). Here is a good run-through of the basics... https://goo.gl/v5K646

Tuesday 14th - 11:52

Though severe (if you are long Turkish Lira), Turkey's collapse is not (yet) the granddaddy of market plunges. Note the Emerging Market representation in this list- they are sometimes labelled risky for a reason ! https://goo.gl/K59JVQ

Monday 13th - 13:51

Factors explain WHY an equity fund manager has performed as they have, (which is why it is getting easier for investors to do it yourself). It is only natural therefore that the same process is applied to bonds. https://goo.gl/tHovx7

Monday 13th - 11:52

This week's blog looks at the effect of the recent UK Interest rate rise on equity valuations from a present/future value perspective. https://goo.gl/Lev5jM

Sunday 12th - 12:51

Bloomberg ruminates on the future for Asset managers in a world where funds charge nothing to invest in them. There ARE alternatives, but it will require a mindset change for them to adapt. Most either can't or won't want to do so... https://goo.gl/ae8ws1

Sunday 12th - 10:57

QE, higher volatility etc is causing (some) wealth managers to advocate (once again) active management - they also say returns will be lower, which increases the need to keep costs down. Their solution is...Hedge funds !!! https://goo.gl/fSb8pf

Saturday 11th - 12:51

"three basic realities about trying to time the markets: hindsight truly is 20/20, you can’t go back in time, and there are thousands of publicly-traded stocks that will double in the next year". Pros cant do it, so why do you think you can? https://goo.gl/YMXRj2

Saturday 11th - 10:57

The Credit Rating Agency, Fitch weighs in on the implications of zero-fee funds- they say this will affect fund manager profitability, but refrain from credit downgrades, but for how long? The inevitable has been only postponed... https://goo.gl/tujFQM

Friday 10th - 13:51

LV ties up with Vanguard to allow the latter to run their range of Index funds, resulting in charges falling by 44% on average and some down by 50% +. Which goes to show how uncompetitive they were previously... https://goo.gl/3g8Fc5

Friday 10th - 11:52

A week after Fidelity cut their Index fees to zero, an Active manager refunds performance fees after a sub-par return. Co-incidence? I suspect not... https://goo.gl/NX1jRY

Thursday 9th - 13:51

Investing from a cricketing perspective; time at the wicket is more important than hitting sixes. The longer the "innings" the more runs you make... https://goo.gl/S19Gwy

Thursday 9th - 11:52

So, 2018 is turning out to be no better for Active Managers than pretty much any other year; but, but, stock pickers market, falling correlations etc, etc? Oh well, there's always 2019... https://goo.gl/Sx1ddR

Wednesday 8th - 13:51

The stated purpose of the SL/Aberdeen merger was to take advantage of scale economies- but as GARS continues to haemorrhage cash, this theory is being severely tested. https://goo.gl/pjDPn6

Wednesday 8th - 11:52

When a popular Active manager leaves, outflows often follow- so buying an active fund ALSO means watching when they leave as well as what they buy and sell. #managerrisk https://goo.gl/AMQWmi

Tuesday 7th - 13:51

Persistence in fund performance makes it hard to separate luck from skill. Evidence of mean reversion in fund returns suggests one would be better off buying the underperformers and selling the winners... https://goo.gl/RopFnB

Tuesday 7th - 11:52

The concept of "willing losers" shows why Active managers fail- there just aren't enough of them left for "professionals" to take money from. https://goo.gl/p6J1XF

Monday 6th - 13:51

The relentless pursuit of returns is causing some funds to cut corners in risk-control. No matter what a fund management SAYS it is more instructive to look at what they DO, particularly if they tout their ethical credentials... https://goo.gl/HWXi6G

Monday 6th - 11:52

This week's blog looks at the limits to Corporate growth and thus why the recent travails at Facebook/Twitter should NOT surprise us, even though they often seem to... https://goo.gl/4kywhE

Sunday 5th - 12:51

We don't know the future, but we can be sure of one thing- economists won't see the next problem coming, because they never do-more navel-gazing, but no solutions seem forthcoming... https://goo.gl/4zZttw

Sunday 5th - 10:57

The parallels between Neil Woodford and Bill Gross are stark; a once revered Active manager finds that when markets turn against them, they do so with a vengeance and they can do little right. And slowly but surely, a reputation, hard earned, is lost... https://goo.gl/Wz4fPD

Saturday 4th - 12:51

Once again, the FT wonders whether Passive funds will survive the FAANGs shakeout, but is not concerned to whom ACTIVE investors will sell if Tech shares lose their popularity. Are they looking in the wrong direction deliberately? https://goo.gl/pcjgpz

Saturday 4th - 10:57

Euro banks are lending in the US rather than Europe due to Euro currency concerns; will more rate rises cause a recession? Only if CONFIDENCE drops. (Rate rises can be a sign of growth in demand). If profits exceed the cost of loans people WILL borrow... https://goo.gl/335hyi

Friday 3rd - 13:51

IF correlations rise in the next crash, the benefits of diversification MAY be reduced. But what is the alternative- go "all in" one asset? https://goo.gl/NSUU8R

Friday 3rd - 11:52

A poker analogy explains why the idea of a "stock pickers market" does not exist. But it serves the finance industry well to continue to peddle this nonsense... https://goo.gl/Nx7gBQ

Thursday 2nd - 13:51

As per a recent post, this article highlights the influence of Index providers decisions on fund weightings and the role of luck in a fund's performance... https://goo.gl/zY11Dg

Thursday 2nd - 11:52

It has finally happened! Fidelity has launched a ZERO fee Index fund. If this takes off, there will be more- a lot more... https://goo.gl/XER52J

Wednesday 1st - 13:51

Vanguard has announced a "restructuring" of its Precious Metals fund; they don't do this at highs in market prices and some are wondering if this is a sign of a low. We shall see, but traders are VERY short right now. https://goo.gl/8X76Jb, https://goo.gl/Qib1Ba

Wednesday 1st - 11:52

According to Buffett, “Success in investing doesn’t correlate with IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people in trouble when investing.”- it is discipline that counts, not IQ... https://goo.gl/odsXrW

July, 2018

Tuesday 31st - 13:51

“Last time I recall so much interest in passive funds was in 1999, and it does worry me the same thing is happening again,”-eh? What was the market share of Passive funds in 1999??? https://goo.gl/HxjazA

Tuesday 31st - 11:52

"Interest Coverage Ratios": what they mean and how to tell when a firm is over-indebted... https://goo.gl/M2QEpM

Monday 30th - 13:51

There were some very big losers from Facebook's earnings numbers last week. What will they do no? Most appear to be rushing to re-assure their investors, but what about behind the scenes? Will they quietly look for the exit? https://goo.gl/hDT9Uf

Monday 30th - 11:52

You can't win the lottery if you don't play, but you can't win in markets either if you are out- one study suggests that 96% of ALL gains occur on 0.85% of all trading days. Market timing plays have very low odds of success. https://goo.gl/F6aQSo

Sunday 29th - 12:51

Risk is not constant- it changes as the investor changes (age, risk tolerance et). Maybe investment planning needs to adapt too. https://goo.gl/FC444t

Sunday 29th - 10:57

If your active manager tries to explain why he/she has lagged the market, listen closely- and then check to see if this is the REAL explanation. This example highlights how they attempt to "spin" their failures. https://goo.gl/qLkZ9N

Saturday 28th - 12:51

" More money is lost through missing out on opportunities than in any other way"- a reminder of why market timing fails. https://goo.gl/o9CkHG

Saturday 28th - 10:57

Larry Swedroe attempts to explain why investors continue to fall for the active management scam and why doing nothing is (almost) always the best option-of course, the latter this doesn't benefit the finance industry, so they ignore it,... https://goo.gl/27w16o

Friday 27th - 13:51

More rodents leaving a sinking ship. But is it too late? Getting out may be the easy bit- how do you decide when to return? Oh, the perils of market/fund selection timing... https://goo.gl/8L6L6q

Friday 27th - 11:52

Yesterday FB lost $123 BILLION in market cap, but for insiders, it could have been much worse... https://goo.gl/KbwrTa

Thursday 26th - 13:51

An interesting book that looks at both money and its role in one's life. Not all the conclusions are what one might expect... https://goo.gl/4p6cXH

Thursday 26th - 11:52

The reasons for Indexing's rise are well known (by most); a slowdown is inevitable after torrid inflows of recent years-but assuming it will reverse is either wishful thinking or just plain illogical. https://goo.gl/X1v79j

Wednesday 25th - 13:51

Its as if Corbyn was already in No 10. The #FCA plans to have a minimum interest rate on savings accounts; wonder who they think will end up paying for it? (Hint, NOT the Banks)... https://goo.gl/fq5enS

Wednesday 25th - 11:52

An extremely wise maxim, which is all too relevant in the current financial world (Jason Zweig).. https://goo.gl/HdgHMS

Tuesday 24th - 13:51

When a poorly performing fund is merged into another, it is the (surviving ) funds' performance numbers that are retained- thus "survivor bias" skews fund manager performance numbers upwards. But its all in shareholders interests of course... https://goo.gl/tDhZM1

Tuesday 24th - 11:52

Factor Investing. Can it finally kill off the Hedge fund dodos? https://goo.gl/wX7HFP

Monday 23rd - 13:51

According to this study, underperforming bond fund managers are more likely to be fired than their equity equivalents. Which might explain why there are so many of the laggards in the equity space. https://goo.gl/GNbzYL

Monday 23rd - 11:52

A recent review of the #FCA revealed that they haven't covered themselves in glory (again), this time failing to enforce their own rules. But incentives are the main problem. No sackings/resignations etc. mean the whole process continues... https://goo.gl/umfq9a

Saturday 21st - 10:57

“You know the old joke: doctors bury their mistakes. Mutual funds close or merge theirs” The ugly truth about how some funds hide poor performance; over a 15yr time span, 58.5 percent of U.S.-based actively managed funds were closed or merged into others https://goo.gl/tDhZM1

Friday 20th - 13:51

ETFs are great to have in your portfolio, but with so many choices how do you make the best decision? This question is not as straightforward as it seems; Forbes' answer https://goo.gl/HbkBWa

Friday 20th - 11:52

Hedge funds ‘destroying enormous value for institutional investors' https://goo.gl/XaDetL

Thursday 19th - 16:40

Passive Iinflows have slowed? Actively managed funds would like to have that problem. https://goo.gl/X1v79j

Wednesday 18th - 13:51

Another finance industry pricing scam about to end? ETF/Indexing funds are looking at self-indexing to avoid the fees charged by Index providers. Once the dam bursts, MSCI, FTSE Russell etc. could be toast... https://goo.gl/zU5F7d

Wednesday 18th - 11:52

The #FCA is "considering" a ban on platform exit fees. Not sure why they came about in the first place, but this may be progress; just don't expect the regulator to move swiftly... https://goo.gl/mLsKoH

Tuesday 17th - 13:51

The author compares Active managers to animals whose environment suddenly changes. A better analogy is that of a dinosaur who watches uncomprehendingly as a meteor heads towards them... https://goo.gl/LMZtHS

Tuesday 17th - 11:52

The Great American Small-Cap Scam; "Any time someone with billions of dollars is forced to buy or sell on Wall Street, HFT, and market professionals slaughter them" https://goo.gl/3Hgk1M

Monday 16th - 16:48

A new study suggests that big Investors focus (obsession?) with ESG costs firms in both time and money. Shareholder value is thus lost. The big money managers get to signal their "virtue" though... https://goo.gl/CyMcQ6

Monday 16th - 13:51

This article shows, in numerical terms, the benefits of diversification and re-balancing. It won't generate the highest returns, but it WILL lower risk, which is the best the investor can hope for. https://goo.gl/PCZ3nv

Monday 16th - 11:52

Annual (and current year-to-date) asset class returns. Nope, still can't see a (forecastable) pattern... https://goo.gl/djv3Fn

Sunday 15th - 12:51

The cost to the US taxpayer (who guarantees local pension schemes) is C.$600 BILLION. The agency problem writ large- neither Wall Street firms NOR Pension fund clients have any (personal) stake whatsoever, so the game goes on... https://goo.gl/pQoFzT

Sunday 15th - 10:57

"Some expensive fund managers do justify their high fees with significant outperformance, but in 2018 less than 10 percent of those examined by Money Management actually made the grade". The article doesn't examine the odds of gains rather the gains made. https://goo.gl/ShUvA7

Saturday 14th - 12:51

"So far this year, stock markets have delivered weak returns, bond markets have turned in negative performances, and everything is much more volatile", an ideal Hedge fund environment- but they are lagging (again). How long until their investors' notice https://goo.gl/6g2DB9

Saturday 14th - 10:57

Maybe Value is still out there, but its hiding- if you want to find it, you will have to look outside the mainstream sources. By definition, value is not popular, otherwise, it would not be thus. https://goo.gl/M5Ct4D

Friday 13th - 16:48

Though it's from a US perspective, this article highlights the issues regarding Home Country Bias and how to deal with it. UK investors have certainly felt the negative effects of over-concentration. The valuation point is a side issue over diversification https://goo.gl/uYWhb5

Friday 13th - 13:51

US fund flows show the continued dominance of Index funds and ETFs. Year-to-Date,16 of the top 20 were thus. https://goo.gl/B2HSMt

Friday 13th - 11:52

Active management may (though I doubt it) work in India, though other investors don't seem to share that view; in the US for example... https://goo.gl/8zSpm3 https://goo.gl/Ga1oab

Thursday 12th - 16:48

LOL- Active proponent talks about "potential conflicts of interest and suitability" re passive ETFs. He (belatedly) concedes that Indexing has done well, but as usual, that's all in the past. Did he recommend Indexing before...? https://goo.gl/xQC9ih, https://goo.gl/myh15q

Thursday 12th - 13:51

Swedroe, "When choosing an index fund, many investors focus solely on its expense ratio, that can be a mistake for a variety of reasons. The first is that expense ratios are not a mutual fund’s only expense". https://goo.gl/rS4Lqg

Thursday 12th - 11:52

The cost of getting market-timing wrong is enormous. No-one can do it consistently, so why try? https://goo.gl/dVVMuB

Wednesday 11th - 16:48

Investors cannot resist the siren call of Active management; they play on our psychology, such that even demonstratively poor returns don't put us off. Maybe, it will always be thus... https://goo.gl/pGnvMc

Wednesday 11th - 13:51

The gap between 'good' and 'bad' asset managers continues to widen. https://goo.gl/ss4Bsb

Wednesday 11th - 11:52

"There’s no point looking for rational explanations for what is a “fundamentally irrational choice". Trying to beat the stock market by buying expensive funds is a bit like smoking: most people should know it’s bad for them, so why do they persist? https://goo.gl/9LHhTM

Tuesday 10th - 16:48

The difference between anticipating (i.e trying to time) a bear market and preparation is worth a fortune in "opportunity cost" terms. Trade/invest in what you SEE not what you fear... https://goo.gl/GWmntC

Tuesday 10th - 13:51

Apparently, the trick is to avoid the "losers" when buying stocks due to the skewed nature of stock returns. The problem is that the criteria cited for "extreme outlier" losers are precisely those that which have benefitted most of late (from QE etc)...https://goo.gl/Mw9kf3

Tuesday 10th - 11:52

Vanguard is seeing a reduction in fund flows- buy everyone else is doing worse still. The trend continues to favour Indexing over the alternatives... https://goo.gl/daP5eD

Monday 9th - 16:48

As Central Bank reserves continue to rise, they are increasingly behaving like the asset managers they regulate- and buying into "alternative" asset classes. https://goo.gl/Au1XSz

Monday 9th - 13:51

Apparently, as the economic benefits of growth shift from Wall Sreet to Main Street, investing may get tougher, which tells us that the last ten years economic policies have mainly been directed at the former... https://goo.gl/k34Y1g

Monday 9th - 11:52

SPIVA's latest report uses risk (Sharpe ratio) adjusted returns in an attempt to level the playing field for active versus Index performance; it improves the picture a little but by nowhere near enough to make the case for Active management... https://goo.gl/6xZ9FL

Sunday 8th - 12:51

Still no commitment from SL Aberdeen on the Virgin money 1% All-Share tracker's new price. Charges will be "appropriate". Wonder what that means... https://goo.gl/G768At

Sunday 8th - 10:57

Truly passive index and exchange-traded funds are winning over many financial advisers. Goldman Sachs has built the ETF equivalent of a killer cyborg calibrated to exploit the growing world of fee-based advisers. https://goo.gl/sTkeqm

Saturday 7th - 12:51

The Economist explains why Indexing has made markets MORE not less efficient; by putting the ropey active managers out of business. Much more to do on that front though... https://goo.gl/cKZdX5

Saturday 7th - 10:57

"Contrarian investing" is getting hit hard at the moment, as what goes up stays up and vice versa. Think that's called momentum... https://goo.gl/aVevZd

Friday 6th - 16:48

According to research (from a fund management research firm), cuts in management fees is creating a "race to the bottom" for fees; maybe if they were not so high to start with, the fund firms would not be in this situation...? https://goo.gl/hPKALv

Friday 6th - 13:51

Once again, Carney suggests that a UK rate rise is on the cards; but didn't he say that a month or so back, and month or so before that. Amazing how "experts" are still listened to (and believed)... https://goo.gl/uvzryX

Friday 6th - 11:52

A major Investment bank warns investors about the perils of market timing. The odds of a 10-year positive stock return is about 20:1 (in favour). https://goo.gl/Qyfdk1

Thursday 5th - 16:48

Elon Musk may have a point here, but on Wall Street, analysts don't like to hear that they are as useful as a chocolate teapot... https://goo.gl/qA6MV2

Thursday 5th - 13:51

Because EM assets have done badly this year, this article suggests you abandon global diversification and focus on Actively Managed EM funds. With 50 years or so of evidence to contradict this, we respectfully disagree. And so should you... https://goo.gl/j6ntRN

Thursday 5th - 11:52

Goldman Sach's World Cup predictions seem to be no better than that could be arrived at by tossing a coin (and their market predictions are not much better). Remember, you are buying from them what THEY want to sell! - they know no more than you do... https://goo.gl/PJx3Sp

Wednesday 4th - 16:48

After a spectacular failure, Shiller has (wisely) declined to return to the prediction game. The risk of looking foolish is rarely offset by the potential (reputational) rewards, which is why we dont do it either... https://goo.gl/7bFokk

Wednesday 4th - 13:51

The death of the "Star " fund manager- firms want a consistency of performance (i.e. no index return deviations), but maybe they have also noticed that what goes up (a manager's reputation) can also go down-fast... https://goo.gl/oeRNkm

Wednesday 4th - 11:52

More investors are including ETFs in their portfolios to diversify risk and access funds at a lower cost. Fixed income is seeing large growth because it’s harder for investors to purchase individual bonds–ETFs are democratizing the asset class https://goo.gl/re9G1Y

Tuesday 3rd - 16:48

The $3.4 trillion industry of exchange-traded funds is about to get a lot bigger and cheaper, too. https://goo.gl/ML7K44

Tuesday 3rd - 13:51

Active funds underperform Passive funds even in bear markets, (despite their "risk management" strategies) because they can't cover their fees in so doing. Simples... https://goo.gl/mQCxdt

Tuesday 3rd - 11:52

Vanguard to Further Drive Down the Cost of Investing. Vanguard has announced substantial reductions in the cost of investing with the firm by providing commission-free online transactions for the vast majority of ETF https://goo.gl/hWwQgr

Monday 2nd - 16:49

Growth boom attracts investors to EM passives https://goo.gl/qEvKXP

Monday 2nd - 13:51

The investors' biggest advantage is time https://goo.gl/HGkzib

Monday 2nd - 11:52

Active management alive in the middle kingdom. The roster of Chinese billion-dollar hedge funds is growing fast. By 2030 fund industry assets under management in China will top $17 trillion, second only to the US. https://goo.gl/7ovK8j

Sunday 1st - 12:51

The Big Question - What changes would you like to see in the investment industry that could really make an improvement for investors? https://goo.gl/QueW1G

Sunday 1st - 10:57

Millennials have largely been left in the lurch by pension providers who assume they are too cash poor or disinterested to engage with investing for their future. https://goo.gl/ZT4GA3

June, 2018

Saturday 30th - 12:51

The downward ETF fee trend continues to take mutual funds to school,which is particular welcome in the bond category https://goo.gl/Xx9do7

Saturday 30th - 10:57

30. Successful investing is more about behavior and temperament than IQ or education - 36 Obvious Investment Truths https://goo.gl/btAwPM

Friday 29th - 16:48

Index investing compared to active investing used to be easy to explain to anyone https://goo.gl/mRFLju

Friday 29th - 13:56

The Active-Passive Debate: The battle is over. The winner has been declared, and the losers are still trying to figure out what happened and what comes next https://goo.gl/fGVNMw

Friday 29th - 11:52

Fresh Thoughts On Random Walks, Passive Investing, And Efficient Markets https://goo.gl/tZMmY6

Thursday 28th - 16:48

Vanguard, the Inventor of the Index Fund, Loses Crown to BlackRock https://goo.gl/TjbkXa

Thursday 28th - 13:51

May saw passive inflows dominate over active outflows in the US mutual fund and ETF markets with a respective $29.1bn in and $8.4bn out. https://goo.gl/MuyM9f

Thursday 28th - 11:52

The central concept underlying the case for index fund investing is that of the zero-sum game. https://goo.gl/yywbHC

Wednesday 27th - 16:48

The advantage of indexing is highlighted with statistics that support how active funds are being outperformed by their benchmark indices https://goo.gl/naJSPo

Wednesday 27th - 13:51

Over the long term, the number of outperforming actively managed funds shrink to almost nothing https://goo.gl/BiVdRw

Wednesday 27th - 11:52

Active beats passive in downturns if investors have chosen the right fund ahead of time, which is extremely difficult or more likely adventitious, but not enough to make it worthwhile, https://goo.gl/7dZzpk

Tuesday 26th - 16:48

Is Hedge Fund Love in Our DNA? Despite clear evidence, it may simply be too difficult for a substantial number of investors to believe that superior returns are available by doing nothing but investing in an index fund https://goo.gl/pGnvMc

Tuesday 26th - 13:51

The Vanguard effect is coming for the Canadian mutual fund industry, which charges the highest fees in the world to manage equities. https://goo.gl/PCi6kw

Tuesday 26th - 11:52

3 ways to beat the markets - Invest in a better index, low cost fees and hold quality shares for the long-term https://goo.gl/gbF13m

Monday 25th - 16:48

Warren Buffett 'Any time the market takes a sharp dive,' read this book https://goo.gl/gS8gzf

Monday 25th - 13:51

There's room in portfolios for both growth, value stocks https://goo.gl/VvQ8KB

Monday 25th - 11:52

This week's blog looks at an alternative method for assessing "Value". But is it just another way of re-designating "Growth"? https://goo.gl/8ZasTq

Sunday 24th - 12:51

Only 8 out of a thousand funds produced statistically significant Alpha over 20 years up to 2012; purely by chance, we would expect 25 to do so; if you think YOU can pick those winners at those odds...good luck- you will most definitely need it https://goo.gl/4QT4qw

Sunday 24th - 10:57

According to a US Fed "stress test", ALL US banks would survive a 65% equity price fall, a rise in the VIX to 64 (currently 15) and a property price fall of 30-40%. If true, (and it probably isn't), there will be no bail-out...? https://goo.gl/hyYGn7

Saturday 23rd - 12:51

According to this study, Corporate mortality rates are rising, from a survival rate of 92% (for those that listed pre-1970) to 63% for those listing between 2000 and 2009. Stock picking thus becomes even more difficult and dangerous... https://goo.gl/Bw0Bvw

Saturday 23rd - 10:57

Endless extrapolation alert- Blackrock are now forecasting ETFs will control $25 trillion in assets by 2027; pass me that pinch of salt... https://goo.gl/BNSrGH

Friday 22nd - 16:48

According to research, the majority of Hedge funds are making clients pay for their research costs; another reason to look elsewhere for returns? https://goo.gl/w5KaSp

Friday 22nd - 13:51

Mandatory transparency for "Ethical" funds will give clients a better alignment of their values with their portfolios-but once again, fund firms are resisting, citing increasingly spurious concerns. As we have said before, if you want something done... https://goo.gl/PuYw2k

Friday 22nd - 11:52

More candidates for the CFA exam, which means more qualified investors to compete against, which means beating the market gets ever more difficult. Fund managers will still try though... https://goo.gl/iLF24e

Thursday 21st - 16:48

Is this fake news? An Irish court has actually jailed a banker for his part in a 2008 fraud.10 years late, but a start I suppose-will it catch on? https://goo.gl/xA4Jvm

Thursday 21st - 13:51

"Market timing only makes the brokerage house rich and deflates what 'success' the day trader had. It is a fool's game." https://goo.gl/yWohAZ

Thursday 21st - 11:52

How low can they go? ETFs: With popularity comes competition https://goo.gl/oSTGiK

Wednesday 20th - 16:48

What does this say about "investors"? Couldn't get enough 100-year Argentinian bonds last June, happy to buy 5-year bonds at 4.625% in January, but 40% interest now? No thanks...investing with other peoples money sure is fun... https://goo.gl/k6B8GS

Wednesday 20th - 13:51

Increasingly, Active ETFs are emerging; but they face the same challenges as do Active Mutual fund managers. How will they cover the large cost gap? The result will be the same... https://goo.gl/XBtGWC

Wednesday 20th - 11:52

A textbook US example of why Yield-seeking is dangerous. The high yield comes at the expense of capital. There are similar examples all over the UK Income sector... https://goo.gl/6kyTqM

Tuesday 19th - 16:48

As has become the norm, pay levels in financial firms have vastly out-stripped their value creation. Fund managers now can (and usually do) receive enormous pay packages- the investors? Returns don't seem to keep up...I wonder why? https://goo.gl/6AFDWT

Tuesday 19th - 13:51

Are UK Income funds herding? The evidence suggests they are, but it's not a surprise as buying assets for Income alone necessarily narrows one's investment options. Go for total return instead... https://goo.gl/kFFX1q

Tuesday 19th - 11:52

The debate goes on re Morningstar and its move into fund provision. Can they resolve concerns over conflicts of interest? https://goo.gl/uSzyUB

Monday 18th - 16:48

SJP is not going to bail on Woodford, despite his recent performance "issues" because of their "commercially attractive arrangement" they have with him. So it's not ALL about performance then?? https://goo.gl/qPBD5n

Monday 18th - 13:51

The conjunction fallacy- the belief that hard will lead to successful investing. This interview attempts to disabuse of this notion. But is it why Active funds remain popular (despite ALL the evidence of its failure)? https://goo.gl/BRox6J

Monday 18th - 11:52

This week's Blog looks at High Yield bonds; pundits are seeing the portents of the next crisis in them... https://goo.gl/EQf78n

Sunday 17th - 12:51

Another experiment confirms what we (should) know; even knowing the future path of GDP doesn't generate better returns than staying fully invested. The same applies to Corporate earnings by the way... https://goo.gl/VngkMm

Sunday 17th - 10:57

This article encapsulates the cynicism of the asset management industry- they shouldn't cut fees for clients because they are ALREADY under-charging them! Er, no. the reason they are struggling is that clients ARE noticing the absurd fees they levy... https://goo.gl/D59gYx

Saturday 16th - 12:51

An Active manager invites us to imagine a totally passive market. There would be no price discovery (though CBs have already done that). There would be nobody to pay his 1.45% p.a. fee either, which is probably the real objection. https://goo.gl/rLWUsf https://goo.gl/3ETYoe

Saturday 16th - 10:57

According to Morningstar data, the average fee charged by an actively managed fund is 0.72% of assets, nearly five times as large as the 0.15% average charged by passive funds. There’s been a quiet revolution on Wall Street--investors won https://goo.gl/vGwdV6

Friday 15th - 16:48

The least surprising study results of the decade. Hedge fund managers use public stock tips to create demand for issues they wish to SELL! Why would anyone believe anything else? https://goo.gl/7QyQFX

Friday 15th - 13:51

Individual investors could be throwing away as much as $7 billion a year on expensive index funds that are no better than cheaper funds - without even realizing it! https://goo.gl/RyAoJ3

Friday 15th - 11:52

If investors fail to match (let alone beat) Benchmarks, they only need to look in the mirror to see who's to blame; Buy and Hold is WAY harder than it looks... https://goo.gl/s3TPaE

Thursday 14th - 16:48

The growth of passive investment continues to outpace that of active investment at both global and European levels https://goo.gl/c3J5qX

Thursday 14th - 13:51

The paradox of choice- Bogle agrees with Vanguard's decision to reduce their fund options in its employee pension scheme to (just) 15 from 27. There ARE too many Index funds out there, (5000 or so), which leads to a temptation to trade https://goo.gl/pNNVuK

Thursday 14th - 11:52

Demography may mean that today's markets are going to change-possibly dramatically over the next decade. Check your tolerances AND your expectations... https://goo.gl/B7PK3c

Wednesday 13th - 16:48

Passive investing taking stronghold as many investors believe that passive managers are reshaping the investment universe as fees become the "North Star" of investing https://goo.gl/9NJnEs

Wednesday 13th - 13:51

It seems that what Pension providers say in private about fund managers is different to what they say in public; is the fund manager "game" about to conclude? https://goo.gl/UDNFp8

Wednesday 13th - 11:52

Contrary to the carping of Active manager's it appears that passive funds ARE engaging with corporate management; looks like they will need another excuse to whine about Indexing's growth... https://goo.gl/EDSCWW

Tuesday 12th - 16:48

LGIM have lost patience with some firms over their Climate change dithering. They will sell shares in these firms, but only in SOME of its funds- so they are only part green...? https://goo.gl/9p3djZ

Tuesday 12th - 13:51

Wall Street has ridiculed passive investing for decades. The reason is obvious: Its profits are at stake https://goo.gl/apKo36

Tuesday 12th - 11:52

Japan's GPIF has found that, for their out-sourced fund managers, G appears to be more important than E and S in their ESG portfolios... https://goo.gl/myix1A

Monday 11th - 16:48

Investors are discovering that they can replicate Active manager's factor exposures using cheaper ETFs. No wonder that there is a continual decline in Active AUM. https://goo.gl/ew3cmZ

Monday 11th - 13:51

Whilst playing the winner's game and debating what factors will endure, consider this: diversification is the only free lunch in investing, we suggest you eat as much of it as you can! https://goo.gl/cMxhHy

Monday 11th - 11:52

This weeks' Blog looks at how cracks are starting to show in EM bonds as the Dollar rises. https://goo.gl/yEC5Wq

Sunday 10th - 12:51

Do Investors REALLY pay attention to fees? https://goo.gl/8QsBr2

Sunday 10th - 10:57

The chance of getting caught reduces the risk of earnings misstatements-though the conclusion implies the opposite. https://goo.gl/myv5By

Saturday 9th - 12:51

By using an inappropriate benchmark, funds are "gaming" the active share metric to beat their investment targets. https://goo.gl/mvzJzD

Saturday 9th - 10:57

The Tech bubble is causing Vanguard to drop their S&P 500 from the list of savings options for their own employees. https://goo.gl/yB3fWr

Friday 8th - 16:48

The costs of financial illiteracy are high (and rising). "Invest" the time to learn the ropes to reap the benefits. https://goo.gl/fXth1V

Friday 8th - 13:51

Over one-third of Active Managers are STILL not disclosing their benchmark returns-do they have something to hide? https://goo.gl/hj3XuQ

Friday 8th - 11:52

Hedge funds (hyper) activity is not helping their returns, according to this study on trading patterns post-news. https://goo.gl/K3nMrK

Thursday 7th - 16:48

A damning indictment of GARS, but in truth, it is really about Active management in general. The risk with no return https://goo.gl/XgMc62

Thursday 7th - 13:51

Tech sector re-classification may lead some to (gasp) SELL tech stocks, by the end of September this year... https://goo.gl/3kyJns

Thursday 7th - 11:52

When failure becomes invisible, the difference between failure and success may also become invisible. https://goo.gl/8sKZ56

Wednesday 6th - 16:48

Hedge funds struggling to make money (again). Short T-Bonds and still short the Dollar. May looks to be a bad month. https://goo.gl/AqZdQf

Wednesday 6th - 13:51

Being "busy" does NOT equal being successful. Hard work doesn't always pay off investing... https://goo.gl/mT1vnY

Wednesday 6th - 11:52

The gospel according to St Eugene-forget about trying to "beat" the market- most people don't have a prayer... https://goo.gl/WBWGTZ

Tuesday 5th - 16:48

Hedge funds may have chosen the wrong benchmark against with to measure themselves, but they also obey Sturgeons law https://goo.gl/d1MiHV

Tuesday 5th - 13:51

Could Price/Book be improved as a measure of value? This investor suggests some adjustments to make it work better. https://goo.gl/D8QjzN

Tuesday 5th - 11:52

Is the art of Value investing being supplanted by the rise of the machines? https://goo.gl/9ftXng

Monday 4th - 16:48

What to look out for in Active manager's trading costs- for some, these will be too high a hurdle to leap... https://goo.gl/NhVAEK

Monday 4th - 13:51

R2 and Beta and why they are best used together, rather than separately.... https://goo.gl/ycnXRp

Monday 4th - 11:52

This week's Blog looks at share buybacks- will there be any shares left to buy for investors? https://goo.gl/v6GqoM

Sunday 3rd - 12:51

If you want to invest ethically, you will probably have to do it yourself- definitional problems create a minefield. https://goo.gl/XELwrF

Sunday 3rd - 10:57

Pointless forecast edition- Shiller says Bitcoin will cease to exist by 2118! Just like everything else.. https://goo.gl/Tu3UWJ

Saturday 2nd - 12:51

Hedge fund supremo has a reinsurance vehicle, which only makes sense with the tax break added. Will it survive? https://goo.gl/YeUY6F

Saturday 2nd - 10:57

An interesting story with a good moral- don't buy the "hot" gadgets-buy the shares of the makers..... https://goo.gl/Ar1XtS

Friday 1st - 16:48

A great blog post on why Buy and Hold SEEMS easy (in theory) but is in fact extremely hard to follow in practice... https://goo.gl/TCBrs9

Friday 1st - 13:51

Fidelity mutual fund is doing well since 2008, but investors are selling out anyway. A new phenomenon. https://goo.gl/hjZpuc

Friday 1st - 11:52

Morningstar's April survey finds Passive funds still seeing inflows, Active still seeing outflows-nothing new here. https://goo.gl/WJGikh