Posts tagged as active management

31 Aug 2006

Does Fidelity Special Situations manager Anthony Bolton disprove active management sceptics?

The performance myth persists partly because of the emergence from time to time of ‘legendary’ managers. One such is Anthony Bolton, soon to retire as manager of Fidelity’s Special Situations fund. How does he fare when measured against such tests? He’s good but not good enough to replace a tracker, even to the extent of 20%. He also demonstrates the fatal practical flaw of active management:even for the best managers after the event, relative performance is so inconsistent along the way that most advisers, let alone their clients, cannot stay the course.

read more Commentary by Stuart Fowler
06 May 2005

The cost wedge just got fatter

Most personal finance sections have recently converged on the story that several large fund management houses are pushing up annual management charges again. This is an inevitable consequence of consumers using more agents, including the internet, to avoid or cut front-end loaded sales commissions. The effect is that more of the commission payments from providers to distributors must take the form of a share of the annual management charge, making distribution costs more equal across different types of fund and the ‘cost wedge’ harder to avoid.

read more Commentary by Stuart Fowler
15 Apr 2005

More academic research on active management

Newly published research by the University of Exeter’s Centre for Finance and Investment analysed the performance of UK equity performance in 2,175 segregated UK pension funds between 1983 and 1997. Author Professor Tonks found weak evidence of persistence of outperformance from one year to the next, based on averages of the top quintile (some 400 funds).

read more Commentary by Stuart Fowler
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