New Portfolio Management Technologies Could Further Commoditize Investment Advisory Services
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Index Funds
The Ongoing Case Against Active Management
Submitted by tom on
A recent report from JPMorgan Chase adds fuel to the fire of Bogle-heads and others who support the case against active management of mutual funds.
In other words, in contrast to "passively managed" investment vehicles such as index funds and ETFs, funds that employ highly paid fund managers to "actively manage" securities selection and portfolio management are creating no value through that active management.
In fact, actively managed funds appear to be destroying value for investors on a relative basis.
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Putnam CEO Advocates New Approach to Retirement Planning
Putnam Investments CEO Robert Reynolds spoke about the notion of "lifetime financial product allocation" at a recent industry conference. Reynolds supports the notion of a range of products over the course of one's lifetime that include: Lifetime income options to hedge against longevity risk . Relative return strategies to hedge inflation risk . Absolute return strategies to deal with both inflation and volatility risk ( sequence of returns risk ). Reynolds offered comments on the over-...
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An Interview with Retirement Planning Expert Henry Hebeler
Henry "Bud" Hebeler is a former Boeing executive who has been running a retirement planning...
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John Bogle on Buy and Hold Investing
John Bogle maintains his firm belief that a buy and hold strategy combined with low cost index funds results in the only reasonable approach for the individual investor: "Of course buy and hold is the thing to do. A genius like Jim Cramer hasn't gone anywhere for 10-14 years and few [managed] mutual funds have beaten the market indices during the same period. It's just market timing, and your good market timing is my bad market timing. [We invest within] a totally illogical system where we move...
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