“Price is what you pay, value is what you get.” If I had a tenner for every time I have read that phrase since the Financial Conduct Authority (FCA) issued its interim report on competition in asset management in November, I would be a rich man.
It is the industry’s answer to a report that calls into serious question the value of active management. While passive funds are cheaper, it is argued, what really matters is fund performance: how much value a fund adds. There will always be a place for higher fees, we are told, just as some shoppers will always prefer Waitrose to the likes of Aldi or Lidl.
Do these people inhabit a different planet?
Read the full article here:
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