For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240724:nRSX7197Xa&default-theme=true
RNS Number : 7197X TPP 24 July 2024
Best Invest's 'Spot The Dog' report suggests the traditional wealth management model underperforms. Could TPP provide a solution?
Fund managers split opinion. For some, they're the superstars who drive
market-beating performance. For others, they're overpaid and underperforming.
With access to low-cost trackers so accessible these days, the pressure is on
for wealth managers, and their future existence.
Over 80% of wealth managers underperform simple market trackers, yet investors
still give them their hard-earned capital and wealth.
A yearly feature many wealth managers/fund managers and IFA's dread is the
'spot the dog' list that Best Invest releases, as it exposes the guilty
parties.
This year's numbers do demonstrate how poorly some funds perform. The number
of 'dog funds' has increased by 170% since August 2023, according to
Bestinvest's latest 'Spot the Dog' report.
The report found 151 equity investment funds holding £95.26bn consistently
underperformed.
In August, only 56 funds were highlighted in the last report.
To make it into the list, a fund must have underperformed compared to the
market it invests in by 5% or more overthree years.
A second filter is that the fund must also have underperformed in three
successive 12-month periods in a row.
Global equity funds make up 49 of the 151 dog funds listed, more than double
the 24 listed in August.
The number of UK funds featured on the list also increased to 34, from five in
August.
Two of most prominent-prominent fund managers, Terry Smith and Nick Train saw
the funds they manage, the Fundsmith Equity and WS Lindsell Train UK Equity
funds entering the list for the first time.
The report also highlights the "incredible gains" made by Alphabet (which owns
Google), Amazon, Apple, Meta Platforms (owner of Facebook), Microsoft,
chipmaker NVIDIA and Tesla, which have earned the moniker the 'Magnificent
Seven'.
The companies benefited from investor excitement about the potential benefits
to their businesses from Artificial Intelligence (AI).
Bestinvest managing director Jason Hollands said: "These last three years have
been one of the most challenging periods in living memory for fund managers to
consistently beat markets, because of sharply divergent performance from
different sectors as the world reopened from the pandemic, followed by a war
in Europe and, more recently, excitement about AI driving extreme market
concentration in a small cluster of mega-sized companies."
The Baillie Gifford Global Discovery, SVS Aubrey Global Conviction, AXA ACT
People & Planet Equity, FTF Martin Currie Japan Equity and the Aegon
Sustainable Equity were listed as the top five worst performing dog funds
overall.
The results highlight some of the underperformance in the industry.
However, 2 industry veterans plying their trade in the quiet and calm away
from the City (Stamford and Cambridge) might be on the verge of providing a
solution for frustrated investors.
Edward Davies and Lane Clark have built a solution for investors that aims to
bring 'market-beating' products directly to the marketplace via the platform
they have built which is known as TPP.
TPP provides access to experienced traders and their trading strategies, and
makes these strategies available to the masses.
The strategies available vary, with leveraged trackers (1.5 x leverage) which
bring amplified market returns becoming very popular, but it is the 'long or
flat' and their 'active' strategies that really differentiate them from the
crowd.
The performance since inception has in the main been exceptional, and with no
management or performance fees charged, a solution to what looks like a
slightly outdated wealth management model might just build traction in the
coming years.
Keep your eyes open for TPP, or visit them at www.tppglobal.io
(http://www.tppglobal.io)
Is the traditional world of wealth management about to be disrupted?
We'll find out in time.
About E Financial Newsletter:
At efinancialnewsletter.com (http://efinancialnewsletter.com) we believe in
the power of knowledge. Our comprehensive financial reporting agency work with
clients near and far in order to help them transform the way they analyse
financial news and data.
This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END NRAQKQBKABKDQOB