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...
Three shifts in sector
Takeover rumours continue
Raised £116m in total
Protecting and dividing family wealth
'Pensions could veer off course'