Alan Miller on the Active v Passive debate

Q. How does your use of ETFs differ to that of other fund managers? A. We are quite unique by investing solely in ETFs, with the whole portfolio based on asset allocation and not stock selection. We will be active in terms of changing assets, but we will do this with the lowest cost and most liquidity we can find, which is through ETFs. We have two portfolios. One is called the longterm return, which is like a pension plan, and the other is like a hedge fund called the absolute return portfolio. We offer these in sterling, US dollars and euros, so the asset allocation changes according t...