Jason Broomer

Jason Broomer: Fund survivor bias is alive and kicking

Understanding the impact of cutting the dead wood Nothing sells funds like performance. Despite all the regulator’s railings that past performance is no guide to the future, we see flows being directed to the funds at the top of the league tables time and time again. There are, of course, far too many funds out […]

Square Mile: Time to pass on passives?

They are simple and cheap, but might not necessarily equate to better performance Passive investment strategies continue to gobble up market share. Why shouldn’t they? Active funds generally had a miserable 2018 and the majority of funds in the Investment Association UK All Companies sector lagged behind the FTSE All-Share index. For advisers, passives are […]

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Jason Broomer: Putting philosophy behind fund selection

Fund managers with a solid investment philosophy can identify their edge and the environment in which they will flourish My last column highlighted the weakness in relying on past performance in fund selection (weakness is putting it politely). I then provided an overview of some of the more qualitative factors advisers should consider when analysing […]

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Why you should not use past performance for decision making

Devising a successful fund selection strategy is not easy and many advisers fall into the trap of using recent past performance data in their decision-making process. Unfortunately, explicit performance screens or implicit ones such as reliance on quartile ranking, crowns or star ratings provide virtually no help in the search for funds that outperform. The […]

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Jason Broomer: How do you solve a problem like Trump?

The president’s posturing, bullying and sharp business practice is leading the US economy to the rocks It is galling to watch President Trump’s vain posturing as he parades around the world. His tax cuts have been a good thing for the stockmarket, although they are now wholly reflected in prices. The improbable device of soaking […]

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A warning for advisers using strategic asset allocation models

Significant gilt weightings continue to be recommended, despite concerning signals on their risk Government bonds play a pivotal role in a balanced portfolio; there are very few assets that provide the diversification benefits gilts can bring. So often over the last 30 years, when equity markets have zigged, bond markets have zagged, thereby smoothing return […]

Square Mile: How to improve clarity on fund costs

The FCA interim report of its market study into the asset management industry has placed a flag into the sand that it believes investors should be increasingly discerning about the level of fees they pay for services. As early as the fifth point in the study’s executive summary, a chart details the potential impact of […]