A truly active fund should be designed with the potential to outperform and the process to help it realise that potential, Seneca Investment Managers chief investment officer Peter Elston tells Julian Marr
Peter Elston knows he is being a little unfair when he describes active, passive and benchmark-hugging funds as, respectively "the good, the bad and the ugly". "Of course passive funds are not actually bad," Seneca Investment Managers' chief investment officer quickly clarifies. "They are great for people who do not have the tools, time or inclination to look for good active managers. Unfortunately, Sergio Leone did not call his movie ‘The good, the OK for some and the ugly'. "But as for those heinous closet index-trackers - in my book, to hug the benchmark and charge active fees for doi...
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