What makes the biggest difference: the manager or the mandate?

According to fund managers, it is a mug's game predicting the future of markets but, according to the FSA, it is a mug's game predicting the performance of managers. 'Just trust us with your money', shout the advertisements. 'We have broader coverage and a greater depth of experience to respond to changing circumstances.' But how many of them effectively used their global reach to exploit the seismic shifts in markets over the past three years? Certainly, there have been massive changes in asset allocation. However, most of these have merely been passive reactions to the effects of cha...