Active Management or Passive Management?
There are those that argue that professional fund managers add value by actively selecting the investments for a portfolio. The theory is that if you select the best performing funds or fund managers, that you will outperform the market. Others argue that a very high proportion of active fund managers consistently under perform the market, mainly because the charges they make are too high.
We have some sympathy with the view that simply investing in the main, developed markets of the world through passive strategies is worth pursuing. In other words, fund managers struggle to add value in well researched, traditional markets. However, we believe that there are other areas of the market where a specialist knowledge is extremely valuable. Examples would include exposure to emerging markets, specialist markets, commodities, funds of hedge funds, property funds and structured products.
We are happy to adopt a strategy that includes active and passive management.
If you have questions on any aspects of financial planning please contact
info@critchleys-fp.co.uk