1 August 2016

Shortening the odds on investment success…

In today’s edition of the Press & Journal, Carbon’s investment director, Barry O’Neill, questions the performance of active fund managers in light of a recent report from one of the world’s leading fund data companies, Morningstar.

Their most recent research, covering the 12 month to 1st July 2016, reveals that only 29 of the 242 funds in the UK All Companies sector beat its benchmark, the FTSE All Share index. This represents a slightly worse than one in eight chance of picking a fund that delivered more than the FTSE All Share index over this period.

Barry also highlights how these results debunk the claims made by active fund managers that their skills win the day in downward trending market; if that were the case, market conditions over the past year should have enabled them to deliver a strong performance rather than the appalling results that have been reported.

Barry’s contentions are further supported by recent research findings by The Pensions Institute at Cass Business School in London which demonstrated that the average active fund manager was not only unlucky, but that their stock selection and market timing decisions were “genuinely unskilled”.

Barry advises that Tracker, or “passive” funds deliver much better results, especially over longer investment periods, and even if the active fund occasionally performs better, the associated management fees will almost certainly swallow up any additional return.

It is a very interesting and informative article that highlights the benefits of Carbon’s approach to investments, you can read it here, or by clicking on the image below.

If you would like to discuss your financial planning options, please contact us with any questions you might have. You can do this by calling our head office on 0131 220 0000, or by emailing us at or you can also follow us on Facebook, Twitter or LinkedIn.

You can view Barry O’Neill’s profile here.


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