10 questions everyone should ask their investment manager
By Cristian Angeloni, 1 Nov 19
UK wealth management boutique demystifies investing myths and investor behaviour
Click through the slides below to find out more
There are many beliefs that people hold when it comes to investing, but sometimes they do not always deliver the best outcomes.
From reacting to news and forecasts to letting fees influence fund picking, UK-based wealth management boutique Henderson Rowe answers 10 questions every investor should ask their manager.
Why isn’t more of my money in low-cost ETFs?
“This is at the core of what is plaguing our industry. It’s not a lack of investment knowledge or understanding about markets and how to build effective tools for investors. The problem is the conflict of interest that exists between you and your service provider.
“The truth is that, when it comes to developed markets, ETFs are an excellent and inexpensive way to get exposure. If your investment manager isn’t talking to you about ETFs, they are doing you a disservice and may not be focused on your net-of-fee performance.”
Are high fees correlated with better investment outcomes?
“No. It’s empirically proven that there is no positive correlation between the price of a product and the outcome it’s likely to create. All too often, high fees and exclusivity are used as a marketing tool to boost the perceived prestige of a portfolio and do not reflect its future performance.
“By the same token, one shouldn’t assume a more affordable product will perform worse. In fact, lower fees mean the portfolio already has a head start in terms of net-of-fee performance.”
Click through the slides above to see what other questions should not go unanswered.