Fund managers face the music
Article Abstract:
It is becoming increasingly clear that a significant proportion of fund managers have been paid much too much for attempting to produce what proves to be only average or below-average performance. These efforts have mainly been unsuccessful. Pension fund trustees and investment consultants now realize that there is no point in paying large fees to an active manager when average performance can be obtained at a much reduced cost. As a result, most fund managers are now assessed and rewarded on the basis of how they perform compared with the market as a whole.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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How to keep track with active funds
Article Abstract:
There are still very mixed views in the UK about the merits of index tracking funds as compared with actively managed funds. Index tracking funds tend to outperform actively managed funds, but only because stock markets are competitive. If all investors were to switch to an index-tracking strategy, then the markets would no longer be competitive and the strategy would no longer be effective. However, this would still not necessarily mean that active management would be a more attractive option for ordinary investors.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
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