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

Muted response as Labour names Grimsby Town FC co-owner next investment minister

Muted response as Labour names Grimsby Town FC co-owner next investment minister

After the sudden exit of Poppy Gustafsson last week

Eve Maddock-Jones
clock 08 September 2025 • 2 min read
Hargreaves Lansdown and Schroders to launch double LTAF offering

Hargreaves Lansdown and Schroders to launch double LTAF offering

From next week

Eve Maddock-Jones
clock 08 September 2025 • 2 min read
Darius McDermott: Complacency at the peak

Darius McDermott: Complacency at the peak

'Markets to hit new highs, while credit spreads are at multi-decade lows'

Darius McDermott
clock 08 September 2025 • 5 min read