Vanguard shows how structure is the secret of fund success

Article Abstract:

The business model used by US fund management group Vanguard is discussed. This group offers a complete range of actively managed funds, but was one of the first to adopt the concept of index funds.

Author: Davis, Jonathan
Investment Offices, Investment Companies, Vanguard Financial Service Corp.

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Hedge fund management may be more style than substance

Article Abstract:

Issues concerning hedge fund management are discussed. It is argued that hedge fund managers must be more talented than mainstream fund managers if investors are to be willing to pay higher fees and that performance data about hedge funds can be misleading.

Author: Davis, Jonathan
Hedge funds

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Index-tracking funds can provide ordinary people with a reasonable pension

Article Abstract:

It is becoming increasingly widely accepted that index-tracking investment funds can produce better long-term yields than those which are actively managed. On average, four out of five actively managed funds do not provide a return which is greater than the return on the market as a whole. Even where an actively managed fund does perform well, benefits can be eroded by high fees and transaction costs. It is likely that passively managed funds will become increasingly popular.

Author: Davis, Jonathan
Analysis, Index funds

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Subjects list: Management, Column
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