Graham Bentley: Buying the index is not buying the market

Common standard must be agreed

clock • 5 min read

Passive funds may be on the rise but the ever-widening set of stockmarket indices they can mirror acts as a barrier to clarity and transparency of performance, argues Graham Bentley

My New Year has so far been defined by attending various investment committees at home and abroad, mostly concerned with refreshed asset allocation strategies and subsequent fund selection decisions. There have been two prevailing issues - the regulator's Asset Management Market Study, and cost pressure directing fund selection towards indexing. There are nuances within the latter to which the market study would do well to give more serious consideration. Advisers recognise the population of asset class buckets with suitable funds is fraught with uncertainty. The huge proliferation an...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why non-transparent managers are behind most failed acquisitions

Why non-transparent managers are behind most failed acquisitions

‘They don’t understand the importance of culture and cohesion’

Rami Cassis
clock 12 April 2024 • 3 min read
Partner Insight: Understanding the investment universe

Partner Insight: Understanding the investment universe

Invesco
clock 12 April 2024 • 6 min read
FCA issues warning notice to Neil Woodford over liquidity failings

FCA issues warning notice to Neil Woodford over liquidity failings

The firm failed on four accounts between 2018 and 2019

James Baxter-Derrington
clock 11 April 2024 • 2 min read