“In fact market volatility has been very low, and market returns – both equity and fixed income – have been quite good since the beginning of the year, and without any major blip; it’s therefore been dull in terms of events, but positive in terms of markets.”
Dan Farrow, director of SBN Wealth Management, disputed whether a 20 per cent allocation to passives is a strong conviction, describing it as a "tweak".
Mr Farrow said he tends to have 75 per cent exposure to passives in the portfolios he manages because he can access markets and sectors very cheaply, while offering a high conviction, active strategy for the remaining 25 per cent."
"Comparing individual managers against a benchmark remains a short-term strategy, but delivering good, consistent absolute returns for clients is much more fulfilling and sensible."
katherine.denham@ft.com
