Try the 'no active fund manager' diet
and never look back.
Evidence Based
Model Portfolio
Services (MPS):
Investing
with conviction
This isn’t a conspiracy theory, or even our biased opinion
Short-term gains don’t necessarily lead to long term success. And we’re not talking about fad dieting now. We’re talking about your client’s retirement wealth, and how traditional active fund managers have been helping investors shed pounds for years.
The research has been out there for decades, for all to see, courtesy of Nobel Prize winning economist William F. Sharpe. It’s a short paper, and well worth the five minutes it takes to read. Even better, his research relies only on basic mathematics to arrive at a simple, irrefutable fact:
"After costs, the return on the average actively managed dollar will be less than the return on the average passively managed dollar."
What is an evidence based MPS?
Unlike traditional investment strategies that often rely on intuition or trends, evidence based MPS roots its decisions in empirical data and rigorous research. This methodology is founded on the belief that historical market behaviours, combined with comprehensive data analysis, offer the best indicators of future performance.
Oh and there's more, much more...
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Why Choose Evidence Based MPS?
In a world overflowing with information, it's vital to differentiate between noise and knowledge. Evidence-based MPS does precisely that, ensuring that your investments are driven by data, backed by research, and optimised for success.
Timeline Portfolios provides an evidence based Model Portfolio Service which is the most recommended by advisers in 2023, according to Defaqto.
"Model Portfolios, especially those that are evidence-based, can simplify the investment decision process and have the potential to generate better outcomes for investors"
Research by SPIVA shows that traditional active fund managers underperform against passive funds in all regions.
Advantages of evidence based MPS
One of the primary advantages of MPS is its innate ability to diversify investments. By spreading assets across various classes, sectors, and regions, evidence-based MPS can reduce individual investment risks, offering a more stable and potentially more profitable portfolio.
Investors are being overcharged to see their portfolios underperform.
Those investors, by the way, are the modest and decent people who trust their retirement wealth to the so-called expert fund managers. And all they’ve got to show for it is stagnant growth.
Enter the diligent Financial Adviser… Of course, for your clients, it’s about more than figures on a chart. It’s about a comfortable retirement. A better quality of later life. And the future financial welfare of their partners and dependents.
You’re here to break it down for them. That the highly-rewarded fund managers who claim to have the instincts and experience to pick the best stocks at the best time, rarely outperform passive funds in the short term, and almost-never in the long term. Even though passive funds cost so much less
So why are we still seeing people in the financial industry continue the Active v Passive debate?
Fund managers build their legends on periods of genuine outperformance in the market.
It’s the stuff of a Netflix drama. But those golden periods never last. The markets are too unpredictable, and luck always runs out. Have you ever seen a film set on Wall Street with a happy ending?