I have added a number of short articles to the new site section Multi Asset Academy.
Data about fund flows shows that a large amount of money is moving from active managed funds into passive funds (index trackers) and from bespoke portfolios and specialist funds into ready made multi-asset funds. This trend is partly because the Vanguard range of funds looks like a ‘have your cake and eat it’ option!
Of course, I know that such fictions only exist in the minds of politicians and marketing men.
There is much in favour of Vanguard, especially their crusade for lower costs and I am in favour of investors using tracker funds in some markets.
But I am much more nervous about people buying unmanaged international multi asset funds (maybe only one) without understanding why, at this moment in time, they look so good and why that will not always be true.
Take a look at some of the articles and keep an eye out for new ones!
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