The effect of reverse compounding is "pretty toxic" to passive investing returns once the fees of the full value chain of advice are taken into account, BMO GAM multi-manager co-head Rob Burdett has said.
The BMO GAM team subtracted varying charges - ranging from 1% to 2% - to simulate different extents of the full value chain of investing, including adviser fees. It then tracked how these fees compounded...
'We have better oversight'
50th anniversary of moon landing
Technical and behavioural factors
The Value Perspective