I am all in favour of index-based products. They should keep the so-called active managers honest and put downward pressure on fees. I think index funds work best when they are linked explicitly to a single index, such as the Top 40. I have not seen significant demand for passive multi-asset funds, and many of these, such as the Sygnia Skeleton range, indulge in very active judgment-based asset allocation. Skeleton is a great brand name which reflects Sygnia CEO Magda Wierzycka’s philosophy that you can’t be too rich or too thin. But as a pension fund trustee I am not yet convinced that a passive multi-asset fund can beat a well co-ordinated active manager, particularly when equities are doing badly. Allan Gray founded his business on the premise that investment was more than just a random walk. Old Mutual might not have the same storied reputation but it has a gem in Profile Edge 28 (formerly Profile Pinnacle). Investec has done well recently in the balanced space, intriguingly by ...
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