Hi Investors,
I came across a commentary in The Telegraph this morning which had some interesting observations on the asset management industry.
www.telegraph.co.uk/business/2024/05/25/expensive-rebrands-asset-managers-improve-savers-returns/ (paywall sadly)
The article highlights the failings of some British financial institutions, such $ABDN.L (abrdn PLC) and $HL.L (Hargreaves Lansdown) . The conclusion of the author: branding will not help as most of the asset managers sell a mediocre product at far too high a price.
The article goes on to refer to S&P research on the performance of active vs passive asset management and highlights that almost none of the active managers beats the index over long timeframe. So why pay the active fee?
I encourage you to look at the S&P research site and specifically the SPIVA (S&P Indices Versus Active) index www.spglobal.com/spdji/en/research-insights/spiva/. This will give you insights how much asset managers actually outperform the index (such as the $SPX500) over a long time frame.
The article concludes that asset management industry needs innovation, in essence a better product. Which leads me to following point: Etoro is innovating the asset management space, providing access to unique Popular investors, ability to compare, inquire on performance via the platform and all versus limited cost.
This is also recognized by the fact that recently Blackrock, a leading global asset manager, has started offering retail products on the Etoro platform. ( www.etoro.com/news-and-analysis/press-releases/etoro-is-working-with-blackrock-to-offer-retail-investors-access-to-core-investing-solutions/ )
Maybe Etoro is (part of) the answer to the struggling asset management industry.
May the odds be ever in your favor!... Show More
