Banker's Umbrella: Passive investing, is it all that?

Banker's Umbrella: Passive investing, is it all that?

clock

In his third column for Professional Adviser, the quasi-mysterious Banker's Umbrella explores the not-so-simple world of simple investing via passives...

Momentum, what a great word, I particularly enjoyed hearing that word pronounced Mo-menu-mum by an old American friend of mine. Mo-menu-mum is exactly what passive index funds are currently experiencing. In the US alone, in 2013, index funds made up nearly 20% of all investment fund assets, that's a little over one trillion in the Queen's currency! Not bad for what started in 1972 as a single investment fund with starting capital of only £7m. The case for index funds is simple enough: They perform better than actively managed funds. Last year, 85 % of actively managed funds perf...

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

What does a new PM and chancellor mean for investments?

What does a new PM and chancellor mean for investments?

'What is important is what happens over the long term'

Jasper Thornton Boelman
clock 23 July 2026 • 4 min read
SJP rebrands global equity income fund and reduces charges

SJP rebrands global equity income fund and reduces charges

Appoints Acadian as investment adviser

Patrick Brusnahan
clock 22 July 2026 • 1 min read
Beyond the 60/40: Why the traditional portfolio blueprint is being tested again

Beyond the 60/40: Why the traditional portfolio blueprint is being tested again

'Bonds should not be doing all the defensive work'

Will Dickson
clock 09 July 2026 • 4 min read