Active Managers' Market-Beating Claims Debunked
Monday, 10 May 2010
New, more precise mutual fund style analysis shows active management still underperforms over time.
Wherever I look, the evidence keeps mounting up. For our clients, the evidence shows right you are to invest using passive funds through asset allocation strategies.
If you are not a client, and still believe your stockbroker will make money for you…
Have a look at this article from Richard A. Ferri, CFA, is the founder of Portfolio Solutions, LLC, a low-cost investment adviser firm in Troy, Mich. He has written numerous books on subjects ranging from asset allocation to index funds and ETFs.
He concludes… “When active managers as a group make the headlines because they "beat the market," it is not a triumph of skill, it is an error in measurement. New methods that properly adjust for style bias show that, as a group, active management is still underperforming passive management in all categories and over nearly all time periods”. Told you so ;)
posted by Murray Round Wealth Management @ 14:37,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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