Robin Powell
Journalist, producer and financial content marketing consultant
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They always used to say, don't invest in active funds, just buy shares in fund management companies. And, right now, they appear cheap.But, as Robert Armstrong says in today's FT, why would anyone want to invest in an industry in structural decline?"There really is only one way for most people to invest," he writes, "and it isn’t that hard.Own a small but diversified set of asset classes passively, in amounts fitted to your timeline and risk preferences; rebalance regularly; and max out your tax-protected accounts. "For 99 per cent of investors, there really is nothing else to do, and if your business depends on retail investors doing something else, you are probably in a wretched business."Loukia Gyftopoulou #Investing #EvidenceInvesting #IndexFunds #ActiveManagement #Shares https://lnkd.in/enym4SJg
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Scott Treloar
Chief Investment Officer at Noviscient | Financial Risk Management, Hedge Funds
4mo
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"Meanwhile, money management is a scale business, with high fixed costs."Actually, money management does not scale well and doesn't need to have high fixed costs. It is just terribly inefficient:- Operationally, the industry is hugely manual, with way too many people working with error-prone spreadsheets and poor technology. - It offers very high pay structures to portfolio managers unable to outperform their benchmarks.- Excessive marketing and distribution fees are paid to the layers and layers of value-extracting intermediaries.- Firms are 'unsafe' because they can't ensure compliance with regulations.I see a future for investment management that operates at less than 20% of the current costs (that is, fund management industry revenues) while offering better outcomes for investors.
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Alan Barry
I help Investment Funds create a Digital Operating Model in a secure and easy to access cloud App
4mo
As someone who has worked in the Funds Industry for decades, that is the approach I take. There are too many intermediaries, too many conflicts of interest, a lack of transparency and an industry built around providing due diligence, all of which can be avoided by direct investing. It is a relationship between an investor and an investment advisor and the only thing that I value is an idea based on research and backed by conviction.
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Nick Everingham
Customer Fulfilment and Delivery Optimisation
4mo
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Great article Robin. Thanks for posting.
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Robin Powell
Journalist, producer and financial content marketing consultant
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I'm in Irvine, California, today for a double celebration 🍾 🥂First, Index Fund Advisors, Inc. is exactly 25 years old. Its inspirational founder Mark T. Hebner explains in this video how it all began and the extraordinary success it's achieved. Now managing $5.1 billion, IFA is one of America's largest and most highly respected independent advice firms.Secondly, on a personal note, I'm delighted to announce that I'm about to become IFA's new Creative Director.I'll be working two days a week for IFA and will continue to work for Timeline, rockwealth, Sparrows Capital Limited and select clients in the UK.Thank you, Mark, for this amazing opportunity — and for everything you've done to educate investors and improve investment outcomes.#Investing #EvidenceInvesting
IFA's 25th Anniversary Celebration https://www.youtube.com/
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Robin Powell
Journalist, producer and financial content marketing consultant
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Accumulation-phase product innovation from the likes of Sparrows Capital Limited and Timeline has greatly improved client outcomes in recent years. It has also allowed financial advisers to focus on areas where they really do add value —behavioural coaching, financial planning, tax planning etc.The next frontier for is the decumulation phase.. and the good news is, that better, more tailored products are already in the pipeline.#Investing #FinancialAdvice #FinancialPlanning Thanks to Mark Northway John Bennett Tom Lovett Walter Cegarra and Robbie Lawther
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Robin Powell
Journalist, producer and financial content marketing consultant
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St James’s Place bullied and belittled me, but I was right all along thetimes.co.ukThe mainstream financial media was far too soft on the UK industry for far too long. Ali Hussain, James Coney and the Sunday Times for their campaigning journalism on behalf of consumers during James's editorship of the Money section.Ali took a great deal of flak for this particular campaign, as did I for some of the comments I made in his articles. But I genuinely believe it's helped to change culture in the industry for the better —and not just at SJP.#Investing #FinancialMedia #Journalism https://lnkd.in/dTY_jYpx
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Robin Powell
Journalist, producer and financial content marketing consultant
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To build a sizeable retirement pot, you have to invest in equities. But the data show that women generally don’t invest enough in equities, and it’s largely down to a lack of confidence.Helping investors to take the right level of risk for them is a valuable role that a good financial adviser plays.Dr Ylva Baeckstrom from King's Business School has researched this subject in detail. Most women, she says, would benefit from an on-going relationship with an adviser they really trust 👇#Investing #Equities #Risk #FinancialAdvice
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Robin Powell
Journalist, producer and financial content marketing consultant
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Spot on from Abraham Okusanya .. We’re about to witness a massive shake-up in UK financial advice.There is still a place for large firms like SJP.. IF they can adapt fast enough. But expect to see a “surge in vibrant, smaller, nimbler owner-managed independent advice firms taking centre stage”. 👇#SJP #FinancialAdvice #FinancialRegulation
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