The purpose of our research and service offering is to help our clients put the needs of investors at the heart of their advice process and in doing so assist advisers in the delivery of high quality investment solutions. There are over 3,000 FCA registered funds domiciled in the UK, the majority being actively managed funds, although with an ever-growing presence of passive funds. It is therefore imperative that advisers are able to identify funds or solutions that not only meet a client’s required investment outcome but also deliver against their stated investment objective through the application of their investment policy.
In analysing passive funds we adopt a slightly different approach to active funds. Passive funds are designed to track indices and the strategies’ success is largely dependent upon the managers’ internal processes and the measures used to mitigate cost. We assess the funds chiefly through quantitative measures, although a degree of qualitative oversight is also employed. Our research is focused on finding funds that will generate higher returns than their peers. The dispersion of returns between good and poor funds will not be as great as in the Active arena, therefore we award generic ‘Recommended’ ratings to highlight the most attractive Passive funds.
To find out more about Square Mile's approach to researching passive funds please click here.
The result of this work we hope is evident in our Academy of Funds. The Academy is free to access for Adviser firms and if you have not yet registered we would invite you to do so by clicking here.