Active or Passive? 🛤

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?


This is something we saw starting in the energy sector, where a provider would switch you automatically to the better rate. Then wider sector groups such as switching services became apparent.

It would be good to see something similar in terms of fund management but I would imagine that regulation and protection of funds is the biggest reason it can’t or doesn’t happen.

Politely asking an underperforming fund manager to leave it possibly good for the business and investors, but there will be situations where it’s not just poor judgement but bad luck.

The thing I find missing is very few active funds I have seen, describe the experience their managers have. I have a mixture of active and passive funds but not by design, just by coincidence.

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