Passive funds simply invest in the index of stocks it seeks to match, in order to closely produce the performance (before any fees or other charges) of that index.
Given the tumultuous times many economies around the world have been going through, it is vital advisers weigh up whether active manager’s fees will be worth it and deliver top returns for their clients.
This guide will tackle what investors can expect from active and passive funds, the costs associated with the different vehicles, how these funds perform in different markets, what part they should play in an investor’s portfolio and how to select the most appropriate offering for your client.
Contributors to this guide are Robin Stoakley, managing director for UK intermediary at Schroders; Andrew Wilson, head of investment at Towry; Ben Yearsley, head of investment research at Charles Stanley Direct; and Alan Miller, co-founder and chief investment officer of SCM Private, which is spearheading the ‘true and fair’ campaign to increase transparency on fund management fees.