Are you a fan of active funds or passive ones? Regardless of the medium you like to invest through, the question has been around for countless years.
SJP has recently had an issue where it’s finding some of the active funds are under performing and offering poor value (potentially negative returns and high fees) and have placed them under additional monitoring.
While not uncommon it’s interesting to peek behind the curtain at what happens next. Will we see mandate changes or even fund managers being displaced from the poorly performing funds?
There are no signs of a Woodford situation but it’s likely this kind of public monitoring and informing people they have found some poor value funds in their range is linked to the Woodford incident.
While it’s easier to assess the value and benefits of passive funds there is such a deep range of active solutions it’s hard to paint them all with one brush, and I’d argue you shouldn’t!
I personally use a mix of active and passive funds depending on their objective and purpose, but I’m keen to know what you prefer and why?