The winning strategy is: do nothing
Article Abstract:
It is possible to argue that most active investment strategies are disappointing. Indeed, 80% of mutual funds fail to beat the market index over any reasonable time frame. In contrast, the Lexington Corporate Leaders Trust, which was set up in 1935 to hold shares in 30 companies which were leaders in their industries at that time, deliberately adopted an inactive investment strategy, with the trustees not being permitted to change the shares. This fund has consistently outperformed the S and P 500, and has beaten all except 15% of conventionally managed US funds.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1996
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'It is too easy for 'star' managers to start believing their own publicity and forget they are in a service business where the client should come first.' (leading fund managers need to change their attitudes)(Column)
Article Abstract:
The recent case of the departure of Nicola Horlick from Morgan Grenfell Asset Management has raised questions about the fund management sector as a whole. Some observers are expressing doubts about whether even the best fund managers should be paid as much as she was reported to be earning, and others have questioned the appropriateness of a 'star' system in fund management. Fund management has become extremely competitive, and it is therefore relatively easy to justify the very high salaries paid to the best fund managers.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
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Help with the unit trust homework
Article Abstract:
There are many different unit trusts available in the UK, and it can therefore be very hard to choose the most appropriate one. This situation is made worse by the fact that most people still do not have access to information which would allow them to distinguish between a well-managed fund and a badly managed one. Even with this information, it can still be difficult to choose the right fund. This is partly because risk is interpreted in different ways by different people.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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