Great British Invest off or Passive V Active Updates

Prism

Linton wrote: »

If you had invested in Linton Growth in $s you would now be up around 14%.

How do you balance between your growth and wealth preservation funds? Do you try to stick to a fixed percentage or let the ratio drift to some extent. I am looking to put something together for my dad, probably using cash savings accounts and cash ISA's for the wealth preservation part (thats what he is used to). Pay yearly out of the cash and rebalance from the growth (equities).

A_T

bostonerimus wrote: »

If we are only comparing active vs passive then we should only be looking at the raw percentage returns.

Yes but your posts should come with the health warning that the passive experience for US investors is very different to those in the UK.

bostonerimus

A_T wrote: »

Yes but your posts should come with the health warning that the passive experience for US investors is very different to those in the UK.

A slight tax advantage because of trading when compared to actives. But the principles of lower fees and not believing that managers don't add enough value to make active investing worth while for most people are the same. There might be a tendency to overweight local stock markets, but there's nothing to stop someone in the UK overweighting the US and vis-versa.....of course we then get deeper into currency issues.

cloud_dog

So, we have the Active's at 5.98% and the Passive's at 3.75%.

A difference of 59% in Active's favour.

And, they would be doing soooo much better if the 'Linton WP' wasn't holding them back. I suggest a board meeting and kick him out

Linton

bostonerimus wrote: »

A slight tax advantage because of trading when compared to actives. But the principles of lower fees and not believing that managers don't add enough value to make active investing worth while for most people are the same. There might be a tendency to overweight local stock markets, but there's nothing to stop someone in the UK overweighting the US and vis-versa.....of course we then get deeper into currency issues.

Even if the UK investor was 100% invested in US the fall in the value of the $ against the £ would still give a 6.5% or so apparent advantage to the US person working in $'s.

TBC15

cloud_dog wrote: »

So, we have the Active's at 5.98% and the Passive's at 3.75%.

A difference of 59% in Active's favour.

And, they would be doing soooo much better if the 'Linton WP' wasn't holding them back. I suggest a board meeting and kick him out

Want a seat at the table?

Bring forth your portfolio.

BananaRepublic

bostonerimus wrote: »

A slight tax advantage because of trading when compared to actives. But the principles of lower fees and not believing that managers don't add enough value to make active investing worth while for most people are the same. There might be a tendency to overweight local stock markets, but there's nothing to stop someone in the UK overweighting the US and vis-versa.....of course we then get deeper into currency issues.

Your post needs to come with a wealth warning that not all markets are like the US. I have owned index funds in Europe and the UK, and they were dogs compared to my European and UK active funds. I supped the passive fund Kool aid, but no longer. However, I don't dispute that in the US market, you can do very well indeed with passive funds.

cloud_dog

TBC15 wrote: »

Want a seat at the table?

Bring forth your portfolio.

The doggie portfolios are in a state of flux atm. I would offer up the OH SIPP but it's in transfer atm. I know which ITs it is going in to so could, in theory back date the IT prices to the start.

I am genuinely interested in the picture this experiment paints.

finellah

I suppose that it might be useful to record an all equity passive option for some sort of comparison with those active portfolios which are all in equities. I don't think any of the passive portfolios are all equity but many of the actives are...

I make it that the Vanguard FTSE Global All Cap Acc has the following monthly scores:

Oct: 3.6%
Nov: 3.2%
Dec: 5.0%
Jan: 5.1%

Thrugelmir

bostonerimus wrote: »

There might be a tendency to overweight local stock markets, but there's nothing to stop someone in the UK overweighting the US and vis-versa.....of course we then get deeper into currency issues.

Hence why I currently actively hold any direct USA IT's such as NAIT. I sold out when the exchange rate fell through the floor. Likewise with European holdings such as EAT. Which I bought when the exchan ge rate was on average above euro 1.38. Sold out entirely when the rate was exchan e rate was euro 1.08. As not just the capital value that's impacted but income.