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...
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till