View more on these topics

Virgin says trackers are better in a bear market

Virgin Money is slamming UK fund managers, saying their performance

is worse than the stockmarket and inv-estors are better off in a

tracker fund during a bear market.

It bases the criticism on its annual report from research consultancy

WM Company which analyses monthly unit price returns in the UK all

companies sector from 1982 to 2002 using the FTSE All-Share index as

its benchmark.

The research shows that 60 per cent of active funds managers failed

to beat the index last year and only once in the last 15 years, in

2000, has the average fund manager done better than the market.

Over the 20-year period covered by the report, called Comparison of

Active and Passive Management Unit Trusts, 80 per cent of fund

managers performed worse than the market.

Director Gordon Maw says: “Even most funds managers admit that

tracker funds are hard to beat in a rising market. However, the myth

has persisted that a fund manager will give you better ret-urns in a

bear market. We now know that tracker funds beat the majority of fund

managers, whichever direction the market is heading.”

IFA Simpsons of Brighton partner Andrew Merricks says: “I disagree

completely with the view that people should have a tracker when the

market goes down.

“They should work harder to find a good fund manager who is allowed

flexibility to beat the market.”


Alternative to an Isa

I am a 35-year-old bach-elor who has recently inherited just under£150,000. I am in a professional occupation and have recentlystarted to achieve my full earnings potential, which means that I nowhave surplus monthly income. I have used the inheritance to repay mymortgage and upgrade my car. This has left me with just under£20,000 in a […]

Leeds & Holbeck Building Society – Secure Growth Account

Friday, 21 February 2003 Type: Guaranteed equity bond Aim: Growth linked to performance of FTSE 100 index Minimum-maximum investment: £3,000-£9,000 Term: Six years Guarantee: Capital returned in full along with 10% growth regardless of the performance of the index Return: Up to 60% at end of term Closing date: Until further notice Commission: None Tel: […]

Smooth move would be rough

The regulator may be growing overly fond of revolutionary changecheered on by the Treasury.It may be planning to turn the way that insurers do business upsidedown by applying the Sandler with-profits model to conventionalwith-profits.Discussion paper 20 could see various restrictions applied towith-profits – particularly on investment – and, as a result, allinsurers would move to […]

Grand prize

Test drive Winterthur Life&#39s fund selection tool and pension optionplanner and you could win a trip for two to the British Grand Prix.IFAs will be entered into a draw by logging on to the online tool, any nowThe winner and a guest will be flown by helicopter to Silverstone fora day in the Paddock […]

Testing the Foundation

The global economy isn’t headed into recession, at least not yet. This month, David Lafferty, Chief Market Strategist at Natixis Global Asset Management, examines current capital market and portfolio risks for signs of recession. Click Here for Capital Market Notes


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm