In poll position
Article Abstract:
Tracker funds can help reduce risk profiles if they are used with active funds. Legal and General UK index fund is a popular tracker fund and offers competitive charges. Pretty Financial's Kim North is among analysts who favor the Legal and General fund, though tracker funds can be volatile, she argues, and they may not be appropriate for first-time investors. Chamberlain de Broe favors investment trusts as opposed to unit trusts since investment trusts offer specific stock prices, and assets are not affected by widespread selling.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Not so simple
Article Abstract:
Tracker funds use different tracking methods and tracking error is one way of assessing providers of these funds. Optimisation, stratified sampling and full replication are the three methods used. Full replication is the most expensive method, and also the most accurate. Trackers using the All-Share index and other broad indices tend to use stratified sampling, where a sample of larger stocks is selected, reflecting the index as a whole. Optimisation tracking uses computer models and is the least expensive methods.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Trackers match up to expectations
Article Abstract:
UK tracker funds account for over 3 billion pounds sterling of unit trusts. Active fund managers may not perform as well as indices and tracker funds tend to be cheaper. The performance of active funds has been slightly stronger in 1996 but this has been an exceptional year since utilities have been affected by concern over the impact of future regulations. Tracker funds vary in terms of how well they track and some margin of error is acceptable.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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