Mickey Morrissey: Balancing cost versus value for money

The cost of investing has become a priority for regulators and investors alike. High costs can exert a meaningful drag on long-term returns and should undoubtedly form part of an adviser's decision-making process. That said, low cost should not be confused with value for money, which is often neglected when evaluating discretionary management strategies. In general, a low-cost strategy will incorporate a far higher weighting in passives. Of course there is a place for passive investments in portfolios - they have low fees and can benefit from significant economies of scale. They do, howe...