Corporate Governance is Crucial for Investment Managers

Your investment manager has some overarching legal and ethical duties: to deal fairly, honestly and in good faith with you as their client, to use reasonable care to avoid misrepresentations and to always act in your best interests. But how can you be sure your investment manager is fulfilling these duties?

Your investment manager can best fulfil these duties and demonstrate them to you by putting in place a governance structure that is effective, flexible and visible to you.

An effective governance structure for investment managers, and ways in which you can stay informed and reassured about it, should include the following.

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What is an Investment Philosophy and Why Does it Matter?

Investment Philosophy and Why Does it Matter

A well-conceived and concise investment philosophy is widely held as crucial to investment success.

It may be even more important than an investment strategy, as your investment philosophy is the precursor of your investment strategy. Investment strategies may require adjustment with changing personal circumstances and market conditions, while your investment philosophy keeps you focused on your long-term objectives.

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You Need to Know About These Passive Investing Risks

Passive Investing and Its Risks
Passive Investing and Its Risks

True or False: Investing in passively managed funds *always* costs less and is lower risk than investing in actively managed funds or portfolios. The correct answer is false – passive investing can be not always lower cost and lower risk, and in fact comes with its own set of risks.

You need to know about these passive investing risks before you choose to invest in index mutual funds or passively managed exchange-traded funds (ETFs) over actively managed funds or personalized investment portfolios. We highlight some of the most important passive investing risks you should know.

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